On a diagram where the interest rate and the quantity of money demanded are shown on the vertical and horizontal axes respectively, the asset demand for money can be represented by:
A. a line parallel to the horizontal axis.
B. a vertical line.
C. a downsloping line or curve from left to right.
D. an upsloping line or curve from left to right.
C. a downsloping line or curve from left to right.
Economics
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In the ISLM framework, the impact of monetary policy on equilibrium income is less when
A) money demand = money supply. B) money demand is infinitely elastic. C) the interest rate is low. D) the investment function has lower interest-sensitivity.
Economics
When banking first began, it could be said that paper money was in reality
a. worthless. b. receipts. c. government money. d. fiat money.
Economics