Between 2008 and 2009, U.S. real GDP decreased from $13.2 trillion to $12.9 trillion. As a result, the real demand for money ________ and the demand for money curve ________
A) decreased; shifted leftward
B) did not change; did not shift
C) increased; shifted leftward
D) decreased; shifted rightward.
A
Economics
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The nominal interest rate minus the real interest rate approximately equals the
A) rate of increase in the amount of investment. B) inflation rate. C) rate of increase in the income. D) rate the bank receives to cover lending costs.
Economics
If the economy is near full employment and Congress cuts taxes, the proper monetary policy should be
a. expansionary to keep the economy fully employed. b. expansionary to counteract the increased deficit. c. contractionary to shift the aggregate demand curve outward. d. contractionary to counteract the effects of fiscal policy.
Economics