Other things constant, the quantity of money demanded varies:
a. directly with the market interest rate
b. inversely with the market interest rate.
c. inversely with the price level.
d. directly with the price level.
e. inversely with the unemployment rate.
b
You might also like to view...
What is a fringe benefit?
a. a cash payment for casual work b. a business other than sales or marketing c. a payment other than wages or salaries d. an accounting term meaning profits
Which of the following scenarios can be classified as passive policy making?
A) The Federal Reserve cuts the federal funds rate in order to increase economic activity. B) The federal government increases spending in order to create jobs. C) The Federal Reserve adjusts the money supply as appropriate to attain a target rate of inflation. D) Congress increases expenditures in an effort to stimulate economic activity.