A decrease in the interest rate, other things being equal, causes a(n):

A decrease in the interest rate, other things being equal, causes a(n):
 a. upward movement along the demand curve for money.
  b. downward movement along the demand curve for money.
  c. rightward shift of the demand curve for money.
  d. leftward shift of the demand curve for money.

QUESTION 2

The net exports effect is the direct relationship between net exports and the price level of an economy.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

People who do not work because of physical disability are officially classified as:
 a. in the labor force.
  b. unemployed.
  c. not in the labor force.
  d. discouraged worker.

QUESTION 4

The interest-rate effect is the impact on real GDP caused by the inverse relationship between the price level and the interest rate.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

In a two-asset economy with money and T-bills, the quantity of money that people will want to hold, other things being equal, can be expected to:
 a. decrease as real GDP increases.
  b. increase as the interest rate decreases.
  c. increase as the interest rate increases.
  d. all of these.