A leftward shift in the money demand function would result from:
a. a decrease in the money supply.
b. a decrease in the price level.
c. an increase in real income.
d. a decrease in the interest rate.
e. an increase in the interest rate
b
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If the market for bottled water is perfectly competitive, how will the following aspects differ in the short run and in the long run?
a. Use of inputs b. Market supply curve of bottled water when firms have identical cost structures c. Profitability of firms with identical cost structures d. Condition to stop production e. Average cost curves of a firm f. Number of firms
The IS curve would be vertical if
A) the government's budget was balanced. B) autonomous expenditures were insensitive to the interest rate. C) the demand for money was insensitive to the interest rate. D) the government increased the money supply.