Question : 61) During an economic expansion when real GDP increases, the A) : 1240514

61) During an economic expansion when real GDP increases, the

A) demand for money increases.

B) demand for money decreases.

C) supply of money decreases.

D) nominal interest rate is constant.

E) real interest rate is constant.

62) During an economic expansion, the demand for money ________ because ________.

A) increases; real GDP increases

B) increases; nominal GDP does not change

C) decreases; real GDP increases

D) decreases; nominal GDP increases

E) does not change; people make more purchases with credit cards

63) During a(n) ________ the demand for money decreases because ________.

A) recession; real GDP decreases

B) expansion; real GDP decreases

C) recession; nominal GDP increases

D) recession; the price level rises

E) equilibrium; real GDP decreases

64) Which of the following shifts the demand for money curve?

i.change in the nominal interest rate

ii.change in real GDP

iii.change in the price level

A) i only

B) ii only

C) iii only

D) ii and iii

E) i, ii, and iii

65) Which statement most accurately describes the effect financial technology has had on the demand for money in the United States?

A) Advances in financial technology have all decreased the demand for money.

B) Advances in financial technology have all increased the demand for money.

C) Some advances in financial technology have increased the demand for money while others have decreased it.

D) Advances in financial technology have had no effect on the demand for money.

E) It is not possible to tell what would be the effect because financial technology has not changed over the past three decades.

66) Advances in financial technology

A) must increase the demand for money.

B) must decrease the demand for money.

C) have no effect on the demand for money or on the supply of money.

D) might increase or decrease the demand for money.

E) affect only the supply of money.

67) The increased use of credit cards leads to

A) a rightward shift in the demand for money curve.

B) a movement upward along the demand for money curve.

C) a leftward shift in the demand for money curve.

D) a movement downward along the demand for money curve.

E) no movement along the demand curve for money nor a shift in the demand curve.

68) As more and more businesses accept credit cards, the

A) demand for money increases.

B) demand for money decreases.

C) quantity of money demanded increases.

D) supply of money decreases.

E) quantity of money demanded decreases.

69) If credit card usage exhibits a sharp increase, there is

A) an upward movement along the demand for money curve.

B) a downward movement along the demand for money curve.

C) a rightward shift of the demand for money curve.

D) a leftward shift of the demand for money curve.

E) a leftward shift of the supply of money curve.

70) All of the following shift the demand for money curve EXCEPT

A) an improvement in financial technology.

B) an increase in real GDP.

C) a rise in the nominal interest rate.

D) a decrease in real GDP.

E) an increase in the price level.