The money supply is ?

Related Mcqs:

1. The quantity theory of money implies that a given percentage change in the money supply will cause ?

   A. an equal percentage change in nominal DGP.
   B. an equal percentage change in real GDP
   C. a larger percentage change in nominal GDP
   D. a smaller percentage change in nominal

2. According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?

   A. The velocity of circulation decrease
   B. The number of transaction decrease
   C. There is deflation
   D. The velocity of circulation and the number of transactions is constant

3. When supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the price level ?

   A. shifts money demand to the right and increases the interest rate
   B. None of these answers
   C. shifts money demand to the right and decreases the interest rate
   D. shifts money demand to the left and increases the interest rate
   E. shifts money demand to the left and decrease the interest rate

4. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?

   A. increase in the money demand
   B. decrease in the money demand
   C. increase in the money demand
   D. None of the above

5. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?

   A. decrease in the money supply
   B. increase in the money supply
   C. decrease in the money demand
   D. None of the above

6. According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ?

   A. Prices to rise and output to rise
   B. Price to fall and output to remain unchanged
   C. Prices to fall and output to fall
   D. prices to rise and output to remain unchanged

7. 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

8. If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?

   A. change in a certain direction
   B. remain constant
   C. fall
   D. rise

9. Which of the following is included in broad money, but not included in narrow money ?

   A. savings accounts
   B. Travelers checks
   C. Currency held outside banks
   D. Automatic-transfer savings accounts

10. 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