When the interest rate falls in the money market, the quantity of money demanded ________ and the quantity of money supplied ________.
A: increases; decreases
B: decreases; increases
C: stays the same; decreases
D: increases; stays the same
A: increases; decreases
B: decreases; increases
C: stays the same; decreases
D: increases; stays the same
举一反三
- Inflation occurs when: （ ） A: the stock of goods and services increases and the quantity of money in circulation decreases. B: the money supply decreases and the output increases. C: output increases faster than the money supply. D: the quantity of money in circulation rises faster than the stock of goods and services.
- When bond interest rates become less volatile, the demand for bonds _________ and the interest rate _________. A: increases; rises B: increases; falls C: decreases; falls D: decreases; rises
- Because the productivity of labor decreases as the quantity of labor employed increases, A: the quantity of labor a firm demands increases as the real wage rate decreases. B: the quantity of labor a firm demands increases as the money wage rate decreases. C: the labor demand curve shifts right as the real wage rate decreases. D: the aggregate production function shifts upward as the real wage rate decreases.
- When conducting an open-market sale, the Fed () A: buys government bonds, and in so doing increases the money supply. B: buys government bonds, and in so doing decreases the money supply. C: sells government bonds, and in so doing increases the money supply. D: sells government bonds, and in so doing decreases the money supply.
- When the Fed makes an open-market sale， it：（ ） A: increases the money multiplier (m). B: increases the currency-deposit ratio (cr). C: decreases the monetary base (B). D: increases the monetary base (B).