As the economy enters a strong expansion in which real GDP increases, which of the following occurs?
A) The demand for money decreases and there is a movement upward along the demand for money curve.
B) The demand for money increases and there is a movement downward along the demand for money
curve.
C) The demand for money curve shifts rightward.
D) The nominal interest rate falls as the demand for money curve shifts leftward.
E) The demand for money curve shifts leftward.
C
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In a situation of free trade,
A. countries with comparative advantage will export more than countries with comparative disadvantage import. B. the total quantity of an item exported will be greater than the total quantity imported. C. importing countries will always produce some good, so that total quantity imported is less than total quantity exported. D. the total quantity of an item exported will equal the total quantity imported.
Since a trade-off exists between total output and equality of income distribution,
A. greater equality of distribution will generally result in higher levels of output. B. greater output is generally associated with more equal distribution. C. policies designed to increase output will only succeed if distribution is more equal. D. policies intended to expand output must necessarily fail. E. policies designed to equalize distribution may adversely affect the size of output.