Question :
101) In the money market, if real GDP increases, then : 1238082
101) 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
102) 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
103) 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
104) 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.
105) In the above figure, the equilibrium interest rate is ________ and the equilibrium quantity of money is ________ trillion.
A) 8 percent; $1.2
B) 4 percent; $0.6
C) 4 percent; $1.2
D) 8 percent; $0.6
E) 0 percent; $1.2
106) In the above figure, if the interest rate is 3 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 for money curve will shift.
D) greater than the quantity of money supplied, and the demand for money curve will shift.
E) greater than the quantity of money supplied, and the supply of money curve will shift.
107) In the above figure, if the interest rate is 2 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 for money curve will shift.
D) greater than the quantity of money supplied, and the demand for money curve will shift.
E) greater than the quantity of money supplied, and the supply of money curve will shift.
108) In the above figure, if the interest rate is 2 percent per year, the ________ because ________.
A) interest rate will change; the quantity of money demanded is less than the quantity of money supplied
B) interest rate will change; the quantity of money demanded is greater than the quantity of money supplied
C) demand for money curve will shift; the quantity of money demanded is less than the quantity of money supplied
D) demand for money curve will shift; the quantity of money demanded is greater than the quantity of money supplied
E) supply of money curve will shift; the quantity of money demanded is greater than the quantity of money supplied
109) The above table has the demand and supply schedules for money. What is the equilibrium nominal interest rate?
A) 5 percent
B) 9 percent
C) 8 percent
D) 7 percent
E) 6 percent
110) The above table has the demand and supply schedules for money. If the Fed increases the quantity of money by $0.1 trillion, the new equilibrium nominal interest rate is
A) 8 percent.
B) 9 percent.
C) 7 percent.
D) 5 percent.
E) 6 percent.
