An increase in the interest rate could have been caused by
a. a fall in the price level causing the money-demand curve to shift leftward.
b. a fall in the price level causing the money-demand curve to shift rightward.
c. a rise in the price level causing the money-demand curve to shift leftward.
d. a rise in the price level causing the money-demand curve to shift rightward.
d
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Milton Friedman would eliminate the destabilizing effect of the Federal Reserve's monetary policy by
A) eliminating the Federal Reserve. B) removing the Federal Reserve's political independence. C) requiring that the Federal Reserve choose a monetary aggregate and increase it at a fixed percentage rate each year. D) eliminating the Federal Reserve's right to carry out open-market operations.
The Granger Cases of the 1870s
(a) sealed the fate of the U.S. railroad system, even though the cases were covered under a case involving a grain elevator. (b) came before the U.S. Supreme Court because state legislatures had passed laws in the 1870s to allow state agencies to control various aspects of railroad operation, including rate setting; these laws were then challenged by railroad companies. (c) established the principle that railroads were unquestionably subject to permanent regulation. (d) are true for all of the above.