1. The investment demand curve is downward sloping. A. True B. False 2. The mone

Question

1. The investment demand curve is downward sloping.
A. True
B. False
2. The money demand curve can shift due to buying bonds.
A. True
B. False
3. The money supply curve can shift due to technology.
A. True
B. False
4. Monetary policy can affect AD.
A. True
B. False
5. Monetary policy can affect investment demand.
A. True
B. False
6. In the long run money is neutral.
A. True
B. False
7. In the short run an expansionary monetary policy raises the interest rate.
A. True
B. False
8. The MD curve is upward sloping.
A. True
B. False
9. The money supply curve is downward sloping.
A. True
B. False
10. Banks determine the supply of money.
A. True
B. False

Explanation / Answer

1) True becouse as the interest rate increases demand for investment decreases.

2) True

3)Money supply curve can shift due to technology becouse it will innovate somethng new, there can be liquidity of cash becouse of electonic transfer which will lead to shift in money supply curve.

4) True, That monetary policy can affect AD becouse of its expansionary and contractionary policy to control money.

5) True, some economist believe that in the long run no real wages and employemnt or gdp gets affected by the stock of money.

7) False, in the short run expensionary monetary poliy does not raises interest rates.

8) False, MD is downward sloping.

9) False, Central bank controls the supply of money.

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