Based on the money market model, when real GDP increases, the equilibrium interest rate should Select one: a. increase the same percentage as the money supply increase. b. increase. c. stay the same. d. decrease.
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- Which of the following reduces the interest rate? a. a decrease in government expenditures and a decrease in the money supply b. an increase in government expenditures and an increase in the money supply c. an increase in government expenditures and a decrease in the money supply d. a decrease in government expenditures and an increase in the money supplyFiat money is Select one: a.money backed by gold or some other precious metal. b.commodity money like salt. c.valuable only because some authority decrees it to be. d.the name given to Italian lira when it is falling in value. One of the impacts of inflation is Select one: a.the real value of money falls. b.wealth is transferred from borrowers to savers. c.an increase in speculative holdings of cash. d.higher real interest rates.What does the term exogenous money supply mean? a. The money supply is determined by external factors b. The money supply is controlled by households c. The money supply is determined by the central bank d. The money supply is determined by market forces.
- he interest-rate effect suggests that: A. an increase in the price level will increase interest rates, and decrease investment and aggregate demand. B. an increase in the price level will reduce interest rates, and decrease investment and aggregate demand. C. a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending. D. an increase in the price level will reduce interest rates, and increase investment and aggregate demand.In an economy where the central bank implements negative interest rates as a monetary policy tool, what is the most likely short-term impact on consumer savings behavior and bank profitability? A. An increase in consumer savings as people seek to safeguard their money and a rise in bank profitability due to increased lending. B. A decrease in consumer savings as the incentive to save diminishes and a decrease in bank profitability due to lower interest margins. C. No significant change in consumer savings behavior but an improvement in bank profitability due to lower borrowing costs. D. A shift in consumer investment towards riskier assets and challenges in bank profitability due to compressed interest margins. Please don't use chatgpt it is giving wrong answer and please provide valuable answer1. Differentiate between real flows and monetary flow. 2.Briefly describe the concept extrapolation.
- Which of the following is correct? The demand for money *a. increases as real GDP increases.b. increases when the interest rate increases.c. depends on the quantity of money.d. decreases as the price level increasesThe multiplier is an indication of the capacity of money injected in the economy to a. increase investment b. increase welfare c. increase consumption d. increase interest rate e. increase GDPAssume GDP is currently $10,800 billion per year and the quantity of money is $540 billion. a. What is the velocity of money?
- Why do economists insist on emphasizing the difference between money and income? Why is this difference important in macroeconomics?An increase in perceived wealth due to an increase in stock prices will cause: Select one: a. right-shift of the aggregate demand curve. b. movement along the aggregate demand curve. c. left-shift of the aggregate supply curve. d. right-shift of the aggregate supply curve.When the money market is depicted in a diagram with the value of money on the vertical axis, what would shift money demand to the left? a. an increase in the price level b. a decrease in the price level c. a decrease in real GDP d. an increase in real GDP ہے
