Q1. Which of the following statements about the demand for and supply of money is least accurate? A) As gross domestic product rises, the demand for money balances also rises. B) As inflation rises, the demand for money by households and businesses also rises. C) As the interest rate rises, the supply of money also rises.
Q2. If the money interest rate is measured on the y-axis and the quantity of money is measured on the x-axis, the money supply curve is: A) downward sloping to the lower right. B) vertical. C) upward sloping to the upper right.
Q3. The supply of money is primarily determined by: A) the monetary authorities. B) interest rates. C) inflation.
Q4. Which of the following statements about the demand and supply of money is most accurate? People who are: A) holding money when interest rates are lower will try to increase their money balances and, as a result, the supply of money increases. B) buying bonds to reduce their money balances will increase the demand for bonds with an associated increase in interest rates. C) holding money when interest rates are higher will try to reduce their money balances and, as a result, the demand for money decreases.
Q5. Which of the following statements about the relationship between interest rates and the demand for and supply of money is most accurate? Interest rates affect: A) the demand for money only. B) the supply of money only. C) both the demand for and supply of money.
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发表于 2009-1-15 15:08
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