Suppose the demand for real money balance function is (MD/P) = kY - hi, where Y is real GDP and i is the market interest rate. The real money demand curve (drawn in a diagram with respect to interest rates measured on the vertical axis) :
A) shift to the left when real GDP falls
B) shift to the right when real GDP falls
C) become steeper when real GDP falls
D) become flatter when real GDP falls.
Correct Answer:
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Q48: If the demand for nominal money balances
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A) the nominal money
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Q55: The money market:
A) in Canada is located
Q56: When the money market is in equilibrium,
Q57: The money supply is:
A) currency in circulation
Q58: If the supply of money curve is
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