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Title: If money demand is extremely sensitive to changes in the interest rate, the money demand curve becom Post by: Tidy on Jun 22, 2015 If money demand is extremely sensitive to changes in the interest rate, the money demand curve becomes almost horizontal. If the Fed expands the money supply under these circumstances, then the interest rate will
A) fall substantially and investment and consumer spending will fall substantially. B) rise substantially and investment and consumer spending will rise substantially. C) fall substantially and investment and consumer spending will change very little. D) change very little and investment and consumer spending will change very little. Title: Re: If money demand is extremely sensitive to changes in the interest rate, the money demand curve b Post by: Sydnie on Jul 7, 2015 Content hidden
Title: Re: If money demand is extremely sensitive to changes in the interest rate, the money demand curve becom Post by: Sydnie on Aug 31, 2015 I was confident with my answer, glad it was correct.
Oh, and thumbs-up are more than welcome :) |