Recent Posts • Latest Topics • Unanswered Questions

If money demand is extremely sensitive to changes in the interest rate, the money demand curve becom

Tidy

wrote...

Go to Answer

Posts: 4852

Rep:

8 years ago

If money demand is extremely sensitive to changes in the interest rate, the money demand curve becom

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.

Textbook

Essentials of Economics

Edition: 4^th

Authors: Hubbard, O'Brien

Read 357 times

2 Replies

Report

Repeat after me: 'Calm down. Things are gonna be fine. Things are gonna be all great. Just relax.' Wink Face

Replies

Answer verified by a subject expert

Sydnie

wrote...

Related Topics

Sydnie

wrote...

8 years ago

I was confident with my answer, glad it was correct.

Oh, and thumbs-up are more than welcome Slight Smile

Report

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

1004 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

AJAX Chat © blueimp.net Integrated with SMF

Related Images

11803

5583

285

Your Opinion

Previous poll results: Do you believe in global warming?

Courses by Biology Forums

Bonobos, Chimpanzees, and the 98% DNA Link

It's sore throat season, why does my mucus have red spots?

The Toxic Skin and Fungi Defense

Strange Ingredients Lurking in Doritos Chips

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.