Higher nominal interest rates ________ the amount of money demanded and higher real income ________ the amount of money demanded.

A. increase; increases
B. decrease; increases
C. increase; decreases
D. decrease; decreases

Answer: B

Economics

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Which of the following is NOT associated with the new Keynesian economics?

A) small-menu cost theory B) market-clearing models to explain business cycles C) inflation dynamics D) sticky-price theories of real GDP determination

Economics

When Grayce deposits $4,000 cash in her checkable deposit at the Beach Bank and the Beach Bank's excess reserves increase by $3,600, the desired reserve ratio is

A) 5 percent. B) 90 percent. C) 10 percent. D) 15 percent. E) $400.

Economics