When the nominal interest rate rises, the quantity of money demanded decreases because
A) people will buy fewer goods and hold less money.
B) people shift funds from money holdings to interest- bearing assets.
C) people move funds from interest- bearing assets into money.
D) the price level also rises and people decrease their demand for money.
Correct Answer:
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Q14: In the short run, which of the
Q15: The unit of account
A)is an accounting of
Q16: Liquidity is the same as
A)diversification of an
Q17: According to the quantity theory of money,
Q18: In the short run, when the Reserve
Q20: The "double coincidence of wants" problem is
A)always
Q21: When the quantity of money demanded is
Q22: When the nominal interest rate rises, the
A)quantity
Q23: Which of the following affects the amount
Q24: The equation of exchange becomes the same
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