An Excess Demand for Money Will Result in All the Following

question 37

Multiple Choice

An excess demand for money will result in all the following, except:

• A)an excess supply of bonds.
• B)a rise in investment spending.
• C)a fall in bond prices.
• D)a fall in consumption spending.
• E)a fall in equilibrium real GDP.

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Definitions:

Salivation in Dogs

An automatic response that occurs in dogs when they anticipate food, famously studied by Pavlov in his classical conditioning experiments.

Nobel Prize

A set of annual international awards bestowed in several categories by Swedish and Norwegian institutions in recognition of academic, cultural, or scientific advances.

Classical Conditioning

A behavioral technique where two stimuli are systematically linked together; over time, a reaction originally elicited by the second stimulus is elicited by the first stimulus alone.

Reflex Response

An automatic, involuntary reaction to a specific stimulus, occurring without conscious thought as part of the body's defense mechanisms.