The demand for money represents the idea that there is ?

Related Mcqs:

1. The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ?

   A. Margaret Thatcher
   B. Ronald Reagan
   C. Milton Friedman
   D. John Maynard Keynes

2. 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

3. The idea that the demand for car workers stems from the demand for cars is ?

   A. output demand
   B. indirect demand
   C. derived demand
   D. the value of the marginal product of auto workers.

4. 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

5. When money demand is 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 interest rate ?

   A. None of these answers
   B. decrease the quantity demanded of money
   C. increase the quantity demanded of money
   D. decreases the demand for money
   E. increases the demand for money

6. 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

7. 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

8. 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

9. 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

10. 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