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Can you explain the right answer to me? thank you!1.If output increases and the interest rate
Can you explain the right answer to me? thank you!
1.If output increases and the interest rate
remains constant, there will be:
A) a decrease in the quantity of money supplied.
B) a decrease in the quantity of money demanded.
C) an increase in the quantity of money demanded.
D) an increase in the quantity of money supplied.
2.Money demand is a function of all the following variables except the:
A) tax rate.
B) price level.
C) level of real income.
D) interest rate.
3.Which of the following is a good argument against an independent central bank, it will:
A) keep monetary policy separate from other economic policies.
B) gradually become more dependent on government.
C) have more influence on expectations than a government institution.
D) be concerned to maintain its independence.
4.Under Keynesian assumptions, if there are fixed exchange rates, and there is a fall in demand for exports, current account ________ and the capital account will ________. A) deteriorate; improve
B) equilibrium; deteriorate
C) deteriorate; deteriorate
D) deteriorate; not change much
