Nasser Almuta Design Layout References Mailings Review View as the noninal inter

Question

Nasser Almuta Design Layout References Mailings Review View as the noninal interest rate increases A) B) decreases as the nominal interest rate increases C) does not change with the changes in the nominal interest rate. D) is fixed at all interest rates. E) is the price level. 35) The demand for money curve shows the relationship between the quantity of money demanded and A) the nominal interest rate B) the real interest rate C) the inflation rate D) the price level. E) real GDP 36) Which of the following increases the quantity of money demanded? A) a rise in the nominal interest rate B) a rise in the inflation rate C) a rise in the real interest rate D) a fall in the nominal interest rate E) an increase in real GDP

Explanation / Answer

35)

A) the nominal interest rate.

the above is the answer because lower interest rate higher the money demand due to lower cost of money.

36)

D) a fall in the nominal interest rate

the above is the answer because lower interest rate higher the money demand due to lower cost of money.

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