Question : 51) An increase in the price level leads to ________ : 1240513

51) An increase in the price level leads to ________ in the demand for money, and an increase in real GDP leads to ________ in the demand for money.

A) an increase; an increase

B) an increase; a decrease

C) a decrease; an increase

D) a decrease; a decrease

E) no change; an increase

52) If real GDP decreases, the

A) demand for money increases.

B) demand for money decreases.

C) quantity of money demanded increases.

D) supply of money decreases.

E) supply of money increases.

53) An increase in real GDP affects the demand for money because

A) when real GDP increases, more money is needed to make expenditures.

B) at the higher price level, it takes more dollars to make expenditures.

C) tax payments rise because more income is earned.

D) there is an inverse relationship between the quantity money demanded and nominal GDP.

E) the larger real GDP, the higher the real interest rate.

54) The ________ real GDP, the ________.

A) larger; larger the demand for money

B) larger; smaller the demand for money

C) smaller; larger the demand for money

D) larger; larger the supply of money

E) larger; smaller the supply of money

55) All else the same, when real GDP increases, the

A) demand for money decreases.

B) demand for money increases.

C) supply of money decreases.

D) supply of money increases.

E) supply of money does not change, and the demand for money does not change.

56) The demand for money increases and the demand curve for money shifts rightward as a result of

A) an increase in real GDP.

B) a decrease in the real interest rate.

C) an increase in the use of credit cards.

D) a decrease in the price level.

E) a decrease in the nominal interest rate.

57) If real GDP decreases, there is

A) an upward movement along the demand for money curve and no shift of the curve.

B) a downward movement along the demand for money curve and no shift of the curve.

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

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

E) no movement along the demand for money curve and the curve does not shift.

58) When real GDP increases, the demand for money ________ and the demand for money curve ________.

A) increases; shifts rightward

B) increases; shifts leftward

C) decreases; shifts rightward

D) decreases; shifts leftward

E) does not change; does not shift

59) The demand for money increases and the demand for money curve shifts rightward if

A) the real interest rate increases.

B) the nominal interest rate increases.

C) real GDP increases.

D) the inflation rate increases.

E) the price level falls.

60) An increase in real GDP leads to

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

B) a movement upward along the demand for money curve but no shift of the curve.

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

D) a movement downward along the demand for money curve but no shift of the curve.

E) neither a shift in the demand for money curve nor a movement along the curve.