If there is excess money demand or money supply in the money market,
A) the short-term nominal interest rate will adjust to bring about equilibrium.
B) the price level will adjust to bring about equilibrium.
C) the supply of money will adjust to bring about equilibrium.
D) the money demand curve will shift to bring about equilibrium.
Correct Answer:
Verified
Q7: Each of the following is a fact
Q8: The opportunity cost of holding wealth in
Q9: The real money demand curve is downward
Q10: The demand for money is _ related
Q11: The demand-for-money function (Md/P) is
A) MyY +
Q13: If there is excess demand in the
Q14: If there is excess supply in the
Q15: The real money supply curve is drawn
Q16: An increase in total income will
A) shift
Q17: A decrease in nominal income will
A) shift
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