A higher nominal money supply is equally demanded given each level of income at

A higher nominal money supply is equally demanded

  • De La Salle Lipa
  • ECON 101
  • Notes
  • fmontserrat
  • 27
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73)A higher nominal money supply is equally demanded, given each level of income, at a _______ interest rate, meaning that the LM curve has shifted to the ________.A)higher, leftB)higher, rightC)lower, leftD)lower, right74)A lower nominal money supply is equally demanded, given each interest rate, at a ______ level of income, meaning that the LM curve has shifted to the _______.75)Suppose the demand for money becomes less sensitive to changes in the interest rate. In moving along an LM curve, an increase in income must be accompanied by a ________ change in the interest rate than before, meaning that the LM curve has become _________.76)When the demand for money becomes less responsive to changes in income, the LM curve becomes ________ and it also shifts to the _______.85
77)In the IS-LM diagram, we are in "general equilibrium"A)at all points.B)at all points on the LM curve.C)at all points on the IS curve.D)only at the intersection of the IS and LM curves.Figure 4-578)In Figure 4-5, the commodity market is in equilibrium79)In Figure 4-5, the money market is in equilibrium86
80)In Figure 4-5, suppose that real income is YB and the money market is in equilibrium. The interest rate at this point is _________ to support commodity market equilibrium, so that involuntary inventory changes are _________.81)In Figure 4-5, at what point do we find the commodity market in equilibrium while the money market is not?A)AB)BC)CD)DE)E82)In Figure 4-5, people would be trying to increase their holdings of money at83)In Figure 4-5, at what income would the interest rate that brings about money market equilibrium cause unwanted inventories of commodities to accumulate?84)From an initial IS-LM equilibrium with normally-sloped IS and LM curves, the money supply falls. At the new IS-LM equilibrium we have some combination of a _______ income and a _______ interest rate.87

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