Question :
91.Whichofthefollowingstatementsiscorrect?
a.Bothliquiditypreferencetheoryandclassicaltheoryassumetheinterestrateadjuststobringthemoneymarketintoequilibrium.
b.Bothliquiditypreferencetheor : 1262193
91.Whichofthefollowingstatementsiscorrect?
a.Bothliquiditypreferencetheoryandclassicaltheoryassumetheinterestrateadjuststobringthemoneymarketintoequilibrium.
b.Bothliquiditypreferencetheoryandclassicaltheoryassumethepriceleveladjuststobringthemoneymarketintoequilibrium.
c.Liquiditypreferencetheoryassumestheinterestrateadjuststobringthemoneymarketintoequilibrium;classicaltheoryassumesthepriceleveladjuststobringthemoneymarketintoequilibrium.
d.Liquiditypreferencetheoryassumesthepriceleveladjuststobringthemoneymarketintoequilibrium;classicaltheoryassumestheinterestrateadjuststobringthemoneymarketintoequilibrium.
92.Changesintheinterestratebringthemoneymarketintoequilibriumaccordingto
a.bothliquiditypreferencetheoryandclassicaltheory.
b.neitherliquiditypreferencetheorynorclassicaltheory.
c.liquiditypreferencetheory,butnotclassicaltheory.
d.classicaltheory,butnotliquiditypreferencetheory.
93.Ifthepricelevelrises,then
a.theinterestratefallsandspendingongoodsandservicesfalls.
b.theinterestratefallsandspendingongoodsandservicesrises.
c.theinterestraterisesandspendingongoodsandservicesfalls.
d.theinterestraterisesandspendingongoodsandservicesrises.
94.Accordingtotheinterest-rateeffect,anincreaseinthepricelevelwill
a.increasemoneydemandandinterestrates.Investmentdeclines.
b.increasemoneydemandandinterestrates.Investmentincreases.
c.increasemoneydemand,reduceinterestrates,andinvestmentincreases.
d.decreasemoneydemandandinterestrates.Investmentdeclines.
95.Asurplusorshortageinthemoneymarketiseliminatedbyadjustmentsinthepricelevelaccordingto
a.bothliquiditypreferencetheoryandclassicaltheory.
b.neitherliquiditypreferencetheorynorclassicaltheory.
c.liquiditypreferencetheory,butnotclassicaltheory.
d.classicaltheory,butnotliquiditypreferencetheory.
96.Whichofthefollowingstatementsiscorrectforthelongrun?
a.Outputisdeterminedbytheamountofcapital,labor,andtechnology;theinterestrateadjuststobalancethesupplyanddemandformoney;thepriceleveladjuststobalancethesupplyanddemandforloanablefunds.
b.Outputisdeterminedbytheamountofcapital,labor,andtechnology;theinterestrateadjuststobalancethesupplyanddemandforloanablefunds;thepriceleveladjuststobalancethesupplyanddemandformoney.
c.Outputisdeterminedbytheamountofcapital,labor,andtechnology;theinterestrateadjuststobalancethesupplyanddemandforloanablefunds;thepricelevelisrelativelyslowtoadjust.
d.Outputrespondstotheaggregatedemandforgoodsandservices;theinterestrateadjuststobalancethesupplyanddemandforloanablefunds;thepriceleveladjuststobalancethesupplyanddemandformoney.
97.Whichofthefollowingstatementsiscorrectfortheshortrun?
a.Outputisdeterminedbytheamountofcapital,labor,andtechnology;theinterestrateadjuststobalancethesupplyanddemandformoney;thepriceleveladjuststobalancethesupplyanddemandforloanablefunds.
b.Outputisdeterminedbytheamountofcapital,labor,andtechnology;theinterestrateadjuststobalancethesupplyanddemandforloanablefunds;thepriceleveladjuststobalancethesupplyanddemandformoney.
c.Outputrespondstotheaggregatedemandforgoodsandservices;theinterestrateadjuststobalancethesupplyanddemandformoney;thepricelevelisrelativelyslowtoadjust.
d.Outputrespondstotheaggregatedemandforgoodsandservices;theinterestrateadjuststobalancethesupplyanddemandforloanablefunds;thepriceleveladjuststobalancethesupplyanddemandformoney.
98.Theshort-runeffectsontheinterestrateare
a.shownequallywellusingeitherliquiditypreferencetheoryorclassicaltheory.
b.bestshownusingclassicaltheory.
c.bestshownusingliquiditypreferencetheory.
d.notshownwellbyeitherliquiditypreferencetheoryorclassicaltheory.
99.Anincreaseintheinterestratecouldhavebeencausedby
a.afallinthepricelevelcausingthemoney-demandcurvetoshiftleftward.
b.afallinthepricelevelcausingthemoney-demandcurvetoshiftrightward.
c.ariseinthepricelevelcausingthemoney-demandcurvetoshiftleftward.
d.ariseinthepricelevelcausingthemoney-demandcurvetoshiftrightward.
100.Theinterestratefallsif
a.eithermoneydemandormoneysupplyshiftsright.
b.moneydemandshiftsrightormoneysupplyshiftsleft.
c.eithermoneydemandormoneysupplyshiftsleft.
d.moneydemandshiftsleftormoneysupplyshiftsright.