The money demand curve slopes:
a. downward because the cost of holding money decreases as the interest rate decreases
b. downward because the cost of holding money increases as the interest rate decreases.
c. upward because people demand more money as real GDP increases.
d. upward because people demand more money as real GDP decreases.
e. downward because people demand more money as the price level decreases.
a
Economics
You might also like to view...
Whenever U.S. government spending increases, thereby increasing the demand for real balances and the rate of interest, the currency will appreciate and there is a potential for:
A) overshooting. B) crowding out. C) a Republican backlash. D) recession.
Economics
Unlike other methods, present value analysis indicates that a project should be undertaken if the NPV is greater than zero regardless the income distribution.
A. True B. False C. Uncertain
Economics