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.