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For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

A. decrease the money supply
B. increase the money supply
C. increase the demand for money
D. decrease the demand for money

For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ? Read More »

Economics Mcqs, Interest Rates And Output, Money

The interest rate ?

The interest rate ?

A. is determined in the goods market and influences the level of planned investment and thus the money market
B. is determined in the money market and influences the level of planned investment and thus the goods market
C. is determined in the goods market and has no influences on the money market
D. is determined in the money market and has no influence on the goods market

The interest rate ? Read More »

Economics Mcqs, Interest Rates And Output, Money

An increase in the money supply aimed at increasing aggregate output is referred to as ?

An increase in the money supply aimed at increasing aggregate output is referred to as ?

A. contractionary fiscal policy
B. expansionary monetary policy
C. contractionary monetary policy
D. expansionary fiscal policy

An increase in the money supply aimed at increasing aggregate output is referred to as ? Read More »

Economics Mcqs, Interest Rates And Output, Money

The chain of events that results from an expansionary monetary policy is ?

The chain of events that results from an expansionary monetary policy is ?

A. aggregate output increases the demand for money increase the interest rate increase planned investment
B. money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase
C. money supply increases the interest rate increase planned investment increases aggregate output increases and money demand increases
D. money demand increases the interest rate decreases planned investment increases aggregate output increases and money demand increases

The chain of events that results from an expansionary monetary policy is ? Read More »

Economics Mcqs, Interest Rates And Output, Money

In terms of the demand for money the interest rate represents ?

In terms of the demand for money the interest rate represents ?

A. the rate at which current consumption can be exchanged for future consumption
B. the price of borrowing money
C. The opportunity cost of holding money
D. the return on money that is saved for the future

In terms of the demand for money the interest rate represents ? Read More »

Economics Mcqs, Interest Rates And Output, Money

Which of the following events will lead to an increase in the demand for money ?

Which of the following events will lead to an increase in the demand for money ?

A. An increase in the interest rate
B. An increase in the level of aggregate output
C. A decrease in the price level
D. An increase in the supply of money

Which of the following events will lead to an increase in the demand for money ? Read More »

Economics Mcqs, Interest Rates And Output, Money

A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?

A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?

A. reduce
B. have no effect on
C. increase
D. double

A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier? Read More »

Economics Mcqs, Interest Rates And Output, Money