Ask Question
BusinessBusiness
20 October, 08:46

Select an answer which correctly completes the following statements.

a. A decrease in real GDP causes a rightward shift of leftward shift of movement along the money demand curve.

b. An increase in technology which makes it easier to pay for goods and services without carrying lots of cash causes a the money demand curve.

c. A decrease in interest rates causes a the money demand curve.

d. An increase in the aggregate price level causes a the money demand curve.

+5
Answers (1)
  1. 20 October, 09:15
    0
    This question is incomplete and below is the updated version

    Select an answer which correctly completes the following statements.

    a. A decrease in real GDP causes a ( ...) the money demand curve demand curve.

    b. An increase in technology which makes it easier to pay for goods and services without carrying lots of cash causes a ( ...) the money demand curve.

    c. A decrease in interest rates causes a ( ...) the money demand curve.

    d. An increase in the aggregate price level causes a ( ...) the money demand curve.

    Answer:

    a. A decrease in real GDP causes a (leftward shift of) the money demand curve.

    b. An increase in technology which makes it easier to pay for goods and services without carrying lots of cash causes a (leftward shift of) the money demand curve.

    c. A decrease in interest rates causes a (movement along) the money demand curve.

    d. An increase in the aggregate price level causes a (rightward shift of) the money demand curve.

    Explanation:

    a. A decrease in real GDP leads to reduction in the demand for money and the contraction of the economy and thus causes a (leftward shift of) the money demand curve.

    b. An increase in technology which makes it easier to pay for goods and services without carrying lots of cash leads to a reduction in the desire to hold money and causes a (leftward shift of) the money demand curve.

    c. A decrease in interest rates leads to higher desire to hold wealth as there is less incentive to invest or save and this causes a (movement along) the money demand curve.

    d. An increase in the aggregate price level causes a greater demand for money and a (rightward shift of) the money demand curve.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Select an answer which correctly completes the following statements. a. A decrease in real GDP causes a rightward shift of leftward shift ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Equivalent units of production are: 1. Work performed during the period. 2. Sales generated during the period. 3. Units of work-in-process inventory. 4. Finished goods inventory.
Answers (1)
The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%. a. Calculate the required rate of return on a security with a beta of 1.25. (Do not round intermediate calculations.
Answers (1)
Market segments can be differentiated by ethnicity and multicultural aspects. a. False b. True
Answers (1)
Negacho, a food and beverage company, introduced a new flavor of potato chips called South Indian Chillis. It received a positive response from consumers, which prompted Brex Mex, another food company, to introduce its own Szechuan flavored chips.
Answers (1)
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic.
Answers (1)
New Questions in Business
Explain, in your own words and step-by-step, what happens to wastewater once it reaches the treatment plant. (6 steps)
Answers (1)
The following information is from the 2017 records of Armand Music Shop: Accounts receivable, December 31, 2017 $43,000 (debit) Allowance for Bad Debts, December 31, 2017 prior to adjustment 1,500 (debit) Net credit sales for 2017 178,000 Accounts
Answers (1)
Green Glass recently pays dividends. Future dividends are projected at $2.5, $3.5, and $4.5 over the next three years, respectively. Beginning four years from now, the annual dividend is expected to grow at 4% annually forever.
Answers (1)
What are two tasks (out of several) commonly performed by operating systems?
Answers (1)
Question 2 1 pts How much is the fine for your thost offense for failure to keep insurance? $1000 $400 $200 $20
Answers (2)
Home » Business » Select an answer which correctly completes the following statements. a. A decrease in real GDP causes a rightward shift of leftward shift of movement along the money demand curve. b.
Sign Up Forgot Password?