The slope of the AD-curve will become steeper if
A: money demand becomes more income inelastic
B: money demand becomes more interest elastic
C: investment becomes more interest elastic
D: the income tax rate is decreased
E: none of the above
A: money demand becomes more income inelastic
B: money demand becomes more interest elastic
C: investment becomes more interest elastic
D: the income tax rate is decreased
E: none of the above
举一反三
- When bonds become more widely traded, and as a consequence the market becomes more liquid, the demand curve for bonds shifts to the _________ and the interest rate _________.
- The _____ sensitive is the demand for money to interest rates, the _____ unpredictable velocity will be.（） A: more; more B: more; less C: less; more D: less; less
- The slope of the AS-curve becomes steeper ( ) A: as wages and prices become more flexible B: as wages become more rigid C: as the economy moves further away from full employment D: as the government implements expansionary fiscal policy
- The slope of the AS-curve becomes steeper A: as nominal wages become more flexible B: as nominal wages become more rigid C: as the actual level of output moves further away from potential output D: as the economy approaches full employment E: both A) and D)
- The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that A: the money market is in equilibrium. B: people buy bonds and the interest rate falls. C: people sell bonds and the interest rate falls. D: bond prices fall and so the interest rate falls.