Question : 81) If the quantity of money demanded greater than the : 1227857

81) If the quantity of money demanded is greater than the quantity supplied, then in the short run the

A) demand for financial assets increases.

B) nominal interest rate falls.

C) nominal interest rate rises.

D) price of financial assets rises.

E) price level rises.

82) If the nominal interest rate is less than the equilibrium nominal interest rate determined in the money market, then households and firms

A) are holding more money than they prefer.

B) are holding less money than they prefer.

C) expect the nominal interest rate to decrease.

D) expect the price level to increase.

E) expect real GDP to increase.

83) If the nominal interest rate is less than the equilibrium nominal interest rate determined in the money market, then in the short run households and firms

A) sell financial assets.

B) buy financial assets.

C) raise the price level.

D) lower the price level.

E) increase real GDP.

84) When households and firms sell financial assets, such as government securities, the

A) nominal interest rate falls.

B) market price of the securities increases.

C) nominal interest rate rises.

D) demand for money curve shifts leftward.

E) supply of money curve shifts leftward.

85) When the nominal interest rate is ________ the equilibrium interest rate, the quantity of money demanded is less than the quantity of money supplied; when the nominal interest rate is ________ the equilibrium interest rate, the quantity of money demanded exceeds the quantity of money supplied.

A) less than; greater than

B) equal to; less than

C) greater than; equal to

D) greater than; less than

E) equal to; greater than

86) In the money market, if the quantity of money supplied exceeds the quantity of money demanded, the nominal interest rate will ________ and the prices of assets will ________.

A) rise; increase

B) rise; decrease

C) fall; increase

D) fall; decrease

E) fall; not change

87) If the quantity of money supplied is greater than the quantity of money demanded, then the

A) nominal interest rate rises.

B) nominal interest rate falls

C) price of financial assets falls.

D) money supply decreases.

E) price level falls.

88) When the Fed changes the quantity of money, there is an immediate effect on

A) the nominal interest rate.

B) real GDP.

C) the price level but not the inflation rate.

D) the inflation rate but not the price level.

E) the price level and the inflation rate.

89) If the Fed wants to raise the interest rate, in the short run in the money market the Fed

A) decreases the quantity of money.

B) increases the quantity of money.

C) shifts the demand for money curve leftward.

D) shifts the demand for money curve rightward.

E) directly raises the interest rate and does nothing to either the supply of money or the demand for money.

90) If the Fed is worried about inflation and wants to raise the interest rate, in the short run it can

A) increase the demand for money.

B) increase the quantity of money.

C) decrease the demand for money.

D) decrease the quantity of money.

E) directly raise the interest rate without affecting either the demand for money or the supply of money.