When the nominal interest rate rises,the quantity of money demanded decreases because
A) people will buy fewer goods and hold less money.
B) the price level also rises and people decrease their demand for money.
C) people move funds from interest-bearing assets into money.
D) people shift funds from money holdings to interest-bearing assets.
Correct Answer:
Verified
Q321: The quantity of money that people choose
Q341: An increase in the nominal interest rate
Q342: Which of the following decreases the demand
Q347: The demand for money curve shifts rightward
Q348: _ real GDP increases the demand for
Q349: Which of the following is correct?
The demand
Q351: In October of 2012,the nominal interest rate
Q352: An increase in the nominal interest rate
A)
Q356: The quantity of money people want to
Q358: Financial innovations can have the effect of
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents