Milton Friedman contends that it is entirely possible that when the money supply rises, interest rates may _________ if the _________ effect is more than offset by changes in income, the price level, and expected inflation.
A: fall; liquidity
B: fall; risk
C: rise; liquidity
D: rise; risk
A: fall; liquidity
B: fall; risk
C: rise; liquidity
D: rise; risk
举一反三
- When the growth rate of the money supply is decreased, interest rates will rise immediately if the liquidity effect is _________ than the other effects and if there is _________ adjustment of expected inflation.
- Call provisions will be exercised when interest rates _________ and bond values _________. A: rise; rise B: fall; rise C: rise; fall D: fall; fall
- Businesses are more willing to sell a product when the price _____ and less willing to sell it when prices _____. A: rises / rise B: rises / fall C: falls / rise D: falls / rise
- According to quantity equation the price level would change less the proportionately with a rise in the money supply if there were also A: either a rise in output or a rise in velocity. B: either a rise in output or a fall in velocity. C: either a fall in output or a rise in velocity. D: either a fall in output or a fall in velocity.
- When the interest rate on a bond is below the equilibrium interest rate, there is excess _________ in the bond market and the interest rate will _________ A: demand; rise B: demand; fall C: supply; fall D: supply; rise