A reduction in the money supply is likely to
Reduce the interest rate
Increase the interest rate
Increase inflation
Decrease deflation
A outside shift in the demand for money other things being equal should lead to
A lower interest rate but the same quantity of money
A higher interest rate but the same quantity of money
A higher quantity of money but lower interest rates
A higher quantity of money but the same interest rate
Supply side policies are most appropriate to cure
Involuntary unemployment
Cyclical unemployment
Voluntary unemployment
A fall in aggregate demand
The precautionary demand for money is
An idle balance
An active balance
Directly related to interest rates
Inversely related to income
A fall in interest rates is likely to
Increase aggregate demand
Increase savings
Decrease consumption
Decrease exports
The liquidity trap occurs when the demand for money
Is perfectly interest elastic
Is perfectly interest inelastic
Means that an increase in money supply leads to a fall in the interest rate
Means that an increase in the money supply leads to an increase in the interest rate