Multiple Choice
If the nominal interest rate rises,
A) there is substantial inflation in the economy.
B) real interest rates are declining.
C) the opportunity cost of holding cash rises.
D) consumers and firms are less inclined to use credit cards.
E) inflation is declining.
Correct Answer:
Verified
Correct Answer:
Verified
Q17: A classical dichotomy refers to the fact
Q18: The nominal money supply is<br>A) exogenous.<br>B) horizontal
Q19: In the monetary intertemporal model, changing M<br>A)
Q20: The monetary base includes<br>A) currency outside banks
Q21: A liquidity trap occurs when<br>A) too many
Q23: If R > q, then<br>A) the marginal
Q24: The most significant problem in trying to
Q25: The Fisher effect is<br>A) the effect of
Q26: Money is useful in exchange when<br>A) credit
Q27: Monetary aggregates are<br>A) the various roles of