Which of the following changes decreases the demand for money? Increase in the risk of stock...

Which of the following changes decreases the demand for money?

		Increase in the risk of stock market
		Increase in the risk of bond market
		Increase in the liquidity of stocks
		Increase in the liquidity of bonds
		None of the above

Expert Solution

none of the above

Demand for money only depend upon income and the interest rate .

thats why all option are incorrect.

Rahul Sunny answered 2 years ago

Changes to both the money supply and the velocity of money include changes in aggregate demand....

Changes to both the money supply and the velocity of money include changes in aggregate demand. However, the long-run impacts of changes in these variables are different. How are the effects of an increase in the velocity of money and the effects of an increase in the money supply different?

14) An increase in the money supply will cause an increase in which of the following...

14) An increase in the money supply will cause an increase in which of the following variables? A) output B) investment C) consumption D) all of the above E) none of the above 15) An increase in the money supply must cause which of the following? A) a leftward shift in the IS curve B) a reduction in the interest rate and ambiguous effects on investment C) an increase in investment and a rightward shift in the IS curve D)...

Which of the following is TRUE when the central bank buys bonds? Money supply decreases Money...

Which of the following is TRUE when the central bank buys bonds? Money supply decreases Money supply increases Interest rates increase Money multiplier increases

Which of the following is the name for the risk of changes in the price or...

Which of the following is the name for the risk of changes in the price or value of fixed-rate debt instruments resulting from changes in market interest rates? Default risk Liquidity risk Inflation risk Interest rate risk

3A. Which of the following will increase the demand for a normal good? A an increase...

3A. Which of the following will increase the demand for a normal good? A an increase in the price of a complement. B a decrease in the number of customers. C a decrease in income. D a decrease in the price of the product. E an increase in the price of a substitute. 3B Martha can spend $54 monthly on bagels and doughnuts. Consider the following two situations: (a) Initially (Situation A), when the price of a bagel is $3...

Which of the following changes leads to an increase in entropy of the system? The evaporation...

Which of the following changes leads to an increase in entropy of the system? The evaporation of water from a puddle The freezing of water into an ice cube The formation of starch from glucose molecules The digestion of protein into amino acids None of these

1 unit increase in price in a market decreases the demand amount by 1 unit and...

1 unit increase in price in a market decreases the demand amount by 1 unit and increases supply amount by 3 units. The autonomous demand is 48 units. While the price is zero, the average supply is -4 units. a) Calculate the values of the balance points. b) In this market, 2 unit tax has been applied for each unit of the firm sold. Calculate the values of new balance points after tax.

An analyst believes that an increase in temperature by 1◦C decreases the demand for small coffee...

An analyst believes that an increase in temperature by 1◦C decreases the demand for small coffee by .5%, holding everything else fixed. You may let T denote temperature in Celsius, and Q denote demand for a small coffee. Does this statement mean the analyst believes that temperature causes demand to increase, or demand causes temperature to increase? Write down an economic model, involving a specific equation, formalizing the statement at the beginning of the question. Please specifically use the number...

suppose the fed decreases the discount rate and buys bonds sufficient to increase the money supply...

suppose the fed decreases the discount rate and buys bonds sufficient to increase the money supply by $200 billion. what impact will this have on the interest rate, investment spending, real gdp, and the price level? would that be a good idea in today's economic environment? why or why not? draw graphs to illustrate your points, and describe them and the points thereon thoroughly.

Which of the following is correct? a. An increase in the money supply causes the interest...

Which of the following is correct? a. An increase in the money supply causes the interest rate to decrease so that aggregate demand shifts right. b. An increase in stock prices reduces consumption spending so that aggregate demand shifts left c. A recession in other countries reduces U.S. net exports so that U.S. aggregate demand shifts left. d. All of the above are correct.

Question