Question : 91) In the money market, in the short run if : 1227858

91) In the money market, in the short run if the quantity of money exceeds the quantity of money demanded, then to achieve equilibrium the

A) supply of money increases.

B) nominal interest rate falls.

C) inflation rate increases.

D) demand for money increases.

E) price level rises.

92) In the money market, in the short run in order to decrease the nominal interest rate, the Fed must

A) increase the quantity of money.

B) increase the discount rate.

C) decrease the demand for money.

D) decrease the quantity of money.

E) directly lower the interest rate and not change either the demand for money or the supply of money.

93) In the short run, when the Fed increases the quantity of money, the

A) demand for money increases.

B) price level decreases.

C) nominal interest rate falls.

D) quantity demanded of money decreases.

E) demand for money decreases.

94) Other things the same, if the Fed increases the quantity of money, the supply of money curve shifts

A) rightward and the nominal interest rate decreases.

B) leftward and the nominal interest rate increases.

C) rightward and the real interest rate increases.

D) leftward and the real interest rate increases.

E) leftward and the nominal interest rate decreases.

95) When real GDP increases, the demand for money ________ and, as a result, the equilibrium nominal interest rate ________.

A) rises; decreases

B) rises; increases

C) falls; decreases

D) falls; increases

E) rises; probably changes but more information is needed to determine if it rises or falls

96) In the money market, if real GDP increases, then the demand for money ________ and the equilibrium nominal interest rate ________.

A) increases; rises

B) increases; falls

C) decreases; rises

D) decreases; falls

E) increases; does not change

97) In the money market, if the price level rises, then the demand for money ________ and the equilibrium nominal interest rate ________.

A) increases; rises

B) increases; falls

C) decreases; rises

D) decreases; falls

E) increases; does not change

98) When the price level rises, the demand for money ________ and, as a result, the equilibrium nominal interest rate ________.

A) rises; decreases

B) rises; increases

C) falls; decreases

D) falls; increases

E) rises; probably changes, but more information is needed to determine if it rises or falls.

99) A change in financial technology that reduces the need to hold cash balances ________ the demand for money and ________ the equilibrium nominal interest rate.

A) increases; raises

B) increases; lowers

C) decreases; raises

D) decreases; lowers

E) decreases; does not change

100) In the above figure, if the interest rate is 8 percent per year, the quantity of money demanded is

A) less than the quantity of money supplied, and the interest rate will change.

B) greater than the quantity of money supplied, and the interest rate will change.

C) less than the quantity of money supplied, and the demand curve for money will shift.

D) greater than the quantity of money supplied, and the demand curve for money will shift.

E) greater than the quantity of money supplied, and the supply curve of money will shift.