Suppose That the Demand and Supply of Money Are Initially

question 94

Multiple Choice

Suppose that the demand and supply of money are initially in equilibrium,and that the demand for money increases.A monetary authority interested in keeping the money supply constant and the interest rate low must:

• A)adopt an expansionary monetary policy.
• B)adopt a contractionary monetary policy.
• C)increase the demand for money.
• D)decrease the demand for money.
• E)give up pursuing both goals at the same time.

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Definitions:

Nonverbal Cues

Subtle signals, often unconscious, expressed through body language, facial expressions, and other nonverbal behaviors, indicating feelings or intentions.

Alert Tone

A sound or message that is designed to warn or inform individuals of important information.

Behavioral Interview

Interview in which you are asked to relate specific incidents and experiences from your past.

Behavioral Interview

A job interview technique where candidates are asked to describe past behavior as an indicator of their future performance.