Other things constant, a decrease in nominal GDP will generally
a. increase the demand for money.
b. decrease the demand for money.
c. increase the nominal interest rate.
d. decrease the money supply.
B
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An increase in the expected inflation rate
A) leads to a movement downward along the short-run Phillips curve. B) shifts the short-run Phillips curve downward. C) shifts the long-run Phillips curve upward. D) shifts the short-run Phillips curve upward. E) leads to a movement upward along the short-run Phillips curve.
Which of these transactions results in an increase in M1?
A) withdrawal of $100 cash from your checking account B) certificate of deposit matures, adding $520 to your checking account C) depositing a bank loan of $400 into your savings account D) depositing a $300 paycheck into your savings account E) none of the above