When real income increases other things equal we can expect the demand for real money holdings to ?
A. fall
B. not change
C. increase
D. None of these
Interest Rates And Output
Three variables affect the demand for money they are _______ and __________?
Three variables affect the demand for money they are _______ and __________?
A. bank opening hours, the proportion of weekly paid employee’s interest rates
B. the price level interest rates real income
C. The time of year bank opening hours the price level
D. The proportion of weekly paid employees the time of year real income
The money supply is ?
The money supply is ?
A. State Bank of Pakistan Issue Department
B. Money + bank cards + credit cards
C. Cheques + money + bank cards + credit cards
D. Currency in circulation plus bank deposits
The primary function of bank is to ?
The primary function of bank is to ?
A. Control the money supply
B. Provide notes and coins for trade
C. Make a profit
D. Provide a cheque clearing system
Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?
Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?
A. flat; steep
B. flat; flat
C. steep; flat
D. steep; steep
When the money supply increase ?
When the money supply increase ?
A. the economy moves up the LM curve
B. The LM curves shifts to the left
C. The economy moves down the LM curve
D. The LM curve shift to the right
The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?
The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?
A. aggregate supply curve
B. LM curve
C. aggregate demand curve
D. IS curve
If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?
If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?
A. be reduced
B. not be affected
C. fall to zero
D. be increased
If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?
If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?
A. Suffer even more
B. not be reduced as much as it would have been
C. be replaced by foreign investment
D. be replaced by consumer spending
According to the simple Keynesian view the aggregate supply curve is ?
According to the simple Keynesian view the aggregate supply curve is ?
A. downward slog over all levels of output
B. upward slog over all levels of output
C. horizontal until it reaches full capacity and then becomes vertical
D. vertical until it reaches full capacity and then becomes horizontal