MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 16, Problem 5SQ
To determine

The impact of decreased rate of interest on the demand curve for money.

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Question 12 If there is excess demand for money, then people will a. deposit more money into interest-bearing accounts, and the interest rate will fall. b. deposit more money into interest-bearing accounts, and the interest rate will rise. c. withdraw money from interest-bearing accounts, and the interest rate will fall. d. withdraw money from interest-bearing accounts, and the interest rate will rise.
A decrease in the interest rate, other things beingequal, causes a (an)a. upward movement along the demand curvefor money.b. downward movement along the demandcurve for money.c. rightward shift of the demand curve for money.d. leftward shift of the demand curve for money.
When the interest rate falls , other things remaining the same, what change occurs in the market for money?   The opportunity cost of holding money _______ and _______.     A. rises ; the demand for money decreases   B. rises ; the quantity of money demanded decreases   C. falls ; the quantity of money demanded increases   D. falls ; the demand for money increases
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