For the Central bank to keep the interest rat unchanged as the govern – McqOptions

MCQOPTIONS

1.	For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?
A.	decrease the money supply
B.	increase the money supply
C.	increase the demand for money
D.	decrease the demand for money
Answer» C. increase the demand for money

Discussion

No Comment Found

Related MCQs

<p> The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?</p>
<p> The way in which government spending is supposed to reduce investment is by increasing ?</p>
<p> Each point on the IS curve represents the equilibrium point in the ?</p>
<p> If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur?</p>
<p> The idea the government spending causes a reduction in private investment is called ?</p>
<p> If the investment demand curve is vertical ?</p>
<p> The interest rate is determined in ?</p>
<p> An example of an expansionary monetary policy is ?</p>
<p> The equilibrium level of aggregate output is determined in ?</p>
<p> The demand for money represents the idea that there is ?</p>