NAIMMCQ Microeconomics As the economy expands the demand for money typically increases. Other things being equal, which of the following is a likely consequence of the increase in the money demand?

As the economy expands the demand for money typically increases. Other things being equal, which of the following is a likely consequence of the increase in the money demand?

Microeconomics

As the economy expands the demand for money typically increases. Other things being equal, which of the following is a likely consequence of the increase in the money demand?

A. An increase in short-term interest rates
B. A decrease in short term interest rates
C. A decrease in the equilibrium amount of M1
D. both b and c

Answer: A

NAIMMCQ

As the economy expands the demand for money typically increases. Other things being equal, which of the following is a likely consequence of the increase in the money demand?

As the economy expands the demand for money typically increases. Other things being equal, which of the following is a likely consequence of the increase in the money demand?

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