Which Of The Following Varies Directly With The Interest Rate

Question: Which of the following varies directly with the interest rate?

A) The opportunity cost of holding money

B) The transactions demand for money

C) The asset demand for money

D) The level of investment

Answer: A

Question:

Answer: A

Question: If bond prices decrease, then the:

A) Interest rate decreases

B) Interest rate increases

C) Transactions demand for money will decrease

D) Transactions demand for money will increase

Answer: B

Question: The conduct of monetary policy in the United States is the main responsibility of the:

A) U.S. Treasury

B) Federal Reserve System

C) Office of Management and Budget

D) Bureau of Economic Analysis

Answer: B

Question:

Answer: B

Question:

Answer: A

Question:

Answer: C

Question: Compared to fiscal policy, monetary policy has a much shorter:

A) Recognition lag

B) Administrative lag

C) Operational lag

D) Effects lag

Answer: B

Question:

Answer: D

Question: Other things equal, an increase in consumer wealth will:

A) Increase aggregate supply

B) Increase aggregate demand

C) Reduce the price level

D) Reduce the money supply

Answer: B