Multiple Choice
According to the quantity theory of money demand
A) an increase in interest rates will cause the demand for money to fall.
B) a decrease in interest rates will cause the demand for money to increase.
C) interest rates have no effect on the demand for money.
D) an increase in money will cause the demand for money to fall.
Correct Answer:
Verified
Correct Answer:
Verified
Q62: The quantity theory of inflation indicates that
Q63: Velocity is defined as<br>A)P + M +
Q64: In the early 1990s,M2 growth underwent a
Q65: Keynes's theory of the demand for money
Q66: The classical economists believed that if the
Q68: If nominal GDP is $10 trillion,and the
Q69: Because Treasury bills pay a higher return
Q70: If the money supply is $500 and
Q71: Keynes's theory of the demand for money
Q72: If the deficit is financed by selling