Multiple Choice
According to liquidity preference theory,an increase in the price level would ________.
A) increase the demand for real money balances
B) decrease the supply of real money balances
C) decrease the real interest rate
D) all of the above
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q23: The exogenous variable in the monetary policy
Q24: As income rises _.<br>A)the number of transactions
Q25: As the nominal interest rate increases _.<br>A)it
Q26: A leftward shift of the money supply
Q27: Autonomous easing of monetary policy involves _.<br>A)raising
Q29: A decrease in the real interest rate
Q30: Suppose real output is 12,500,and the demand
Q31: If the monetary policy curve is correct,then
Q32: When the Federal Reserve increases the money
Q33: A rightward shift of the money supply