Question 1

If the interest rate is above the equilibrium value,the:

Accepted Answer

A)  demand for real balances exceeds the supply. 
B)  supply of real balances exceeds the demand. 
C)  market for real balances clears. 
D)  demand for real balances increases. 
A)  demand for real balances exceeds the supply. 
B)  supply of real balances exceeds the demand. 
C)  market for real balances clears. 
D)  demand for real balances increases.

Question 2

Compare the predicted impact of an increase in the money supply in the liquidity preference model versus the impact predicted by the quantity theory and the Fisher effect.Can you reconcile this difference?

Accepted Answer

The liquidity preference model predicts

If the interest rate is above the equilibrium value,the:

Compare the predicted impact of an increase in the money supply in the liquidity preference model versus the impact predicted by the quantity theory and the Fisher effect.Can you reconcile this difference?

The Science of Macroeconomics

The Data of Macroeconomics

The Open Economy

Unemployment

Economic Growth I

Economic Growth II

Introduction to Economic Fluctuations

Aggregate Supply and the Short-Run

Stabilization Policy

Government Debt and Budget Deficits

Investment

Money Supply and Money Demand

The Financial System

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Exam 10: Aggregate Demand I

If the interest rate is above the equilibrium value,the:

Compare the predicted impact of an increase in the money supply in the liquidity preference model versus the impact predicted by the quantity theory and the Fisher effect.Can you reconcile this difference?

The Science of Macroeconomics

The Data of Macroeconomics

The Open Economy

Unemployment

Economic Growth I

Economic Growth II

Introduction to Economic Fluctuations

Aggregate Supply and the Short-Run

Stabilization Policy

Government Debt and Budget Deficits

Investment

Money Supply and Money Demand

The Financial System

Filters