If the Demand for Money Depends on the Interest Rate

question 26

Multiple Choice

If the demand for money depends on the interest rate, then a 15% increase in the money supply will increase

• A) nominal GDP by 15%.
• B) nominal GDP by less than 15%.
• C) nominal GDP by more than 30%.
• D) real GDP by 30%.

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Definitions:

Excess Of Par

The amount by which the sale price of a share of stock exceeds its par value, often recorded as additional paid-in capital on the balance sheet.

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders, usually in the form of cash.

Financial Statements

Reports that show the financial performance and position of a company, including the balance sheet, income statement, and cash flow statement.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest.