If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?

Related Mcqs:

Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?

A. rise by an amount that depends on the bank’s reserve ratio B. rise by less than the amount of the deposit C. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio D. fall by exactly the amount of the deposit as long as the … Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the...

If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?

A. Suffer even more B. not be reduced as much as it would have been C. be replaced by foreign investment D. be replaced by consumer spending...

The money supply is ?

A. State Bank of Pakistan Issue Department B. Money + bank cards + credit cards C. Cheques + money + bank cards + credit cards D. Currency in circulation plus bank deposits...

If there is a general shortage of liquidity in the money market then ?

A. The banks will increase their lending B. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will fall and the central bank may be expected to reduce the supply of liquidity to the banks C. The short-term interest rate at which the economy’s commercial banks lend … If there is a general shortage of liquidity in the money market then ?Read More...

The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?

A. money supply curve B. LM curve C. money demand curve D. IS curve...