The demand for money curve
A) shows the relationship between money demanded and open market operations.
B) shows the relationship between the quantity of money balances demanded and the interest rate.
C) is positively related to the interest rate.
D) varies inversely with the supply of money.
B
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Suppose your state government could undertake some measures that would improve the safety of highways within the state. If the goal is to use resources efficiently, how many of the measures should be undertaken?
a. all of them b. all measures up to the point at which the marginal social benefit from safety improvements equals the marginal social cost c. all measures for which the marginal social benefits from safety improvements are greater than zero d. all measures for which the marginal social benefit from safety improvements is at least as great as what motorists have reported they would be willing to pay
Which of the following does not cause the money demand curve to shift?
A) a change in the interest rate B) a change in the price level C) a change in transfer costs D) a change in real GDP