Which of the following events raises the nominal interest rate, other things remaining the same?     A. The increased use of mobile wallets   B. The Fed makes an open market purchase   C. An increase in the monetary base   D. A rise in the price level

K The graph shows the demand for money curve. Draw a point to show the interest rate and quantity of money demanded when the interest rate is 5 percent a year. Draw an arrow to show the effect of an increase in the interest rate above 5 percent a year. Label it 1. Draw an arrow to show the effect of a decrease in the interest rate below 5 percent a year. Label it 2. When the interest rate rises, other things remaining the same, the opportunity cost of holding money and A. rises; the demand for money decreases B. falls; the demand for money increases O C. falls; the quantity of money demanded increases OD. rises; the quantity of money demanded decreases 8- 6- 4 2- 0+ Interest rate (percent per year) 2.7 MDO 2.9 3.1 3.3 Real money (trillions of 2007 dollars) >>> Draw only the objects specified in the question. 3.5 € G

An increase in ________ decreases the quantity of money people want to hold. a. the price level b. real GDP c. the interest rate d. the quantity of money

What effect does inflation have on the purchasing power of money? A. It increases the purchasing power of money. B. It decreases the purchasing power of money. C. It has no effect on the purchasing power of money. D. It initially decreases but then increases the purchasing power of money over time.