Suppose That as Sales of Goods Shift from Bricks-And-Mortar Stores

question 35

Multiple Choice

Suppose that as sales of goods shift from bricks-and-mortar stores to the internet,the transactions demand for cash declines. Then in the absence of any other changes,

• A) the IS curve shifts outward
• B) the LM curve shifts inward
• C) the velocity of money will adjust to keep GDP constant
• D) interest rates will fall and GDP will increase
• E) interest rates will rise and investment will decline

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Definitions:

Specifications

Detailed descriptions or guidelines defining requirements, dimensions, materials, or performance criteria for projects, products, or services.

Comply

To act according to an order, set of rules, or request.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Balloons

Financial term referring to a lump-sum payment due at the end of a loan term or payment plan, typically much larger than the preceding installments.