What effect does an increase in the nominal interest rate have on the opportunity cost of holding money and on the demand for money curve?
What will be an ideal response?
An increase in the nominal interest rate increases the opportunity cost of holding money. There is a movement upward along the demand for money curve.
Economics
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Half of American recessions since the early 1950s have been caused at least in part by rapid increases in oil prices
a. True b. False
Economics
When a price ceiling is imposed below the equilibrium price of a commodity,
a. quantity supplied will be greater than quantity demanded for the good. b. the problem of scarcity will be solved. c. a shortage of the good will develop. d. a surplus of the good will develop.
Economics