Business, 14.12.2019 03:31 drelisech6467

Select an answer which correctly completes the following statements.
a. a decrease in real gdp causes a rightward shift of leftward shift of movement along the money demand curve.
b. an increase in technology which makes it easier to pay for goods and services without carrying lots of cash causes a the money demand curve.
c. a decrease in interest rates causes a the money demand curve.
d. an increase in the aggregate price level causes a the money demand curve.

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Answer from: lailai432

This question is incomplete and below is the updated version

Select an answer which correctly completes the following statements.

a. A decrease in real GDP causes a (...) the money demand curve demand curve.

b. An increase in technology which makes it easier to pay for goods and services without carrying lots of cash causes a (...) the money demand curve.

c. A decrease in interest rates causes a (...) the money demand curve.

d. An increase in the aggregate price level causes a (...) the money demand curve.

a. A decrease in real GDP causes a (leftward shift of )the money demand curve.

b. An increase in technology which makes it easier to pay for goods and services without carrying lots of cash causes a(leftward shift of)the money demand curve.

c. A decrease in interest rates causes a (movement along)the money demand curve.

d. An increase in the aggregate price level causes a (rightward shift of)the money demand curve.

Explanation:

a. A decrease in real GDP leads to reduction in the demand for money and the contraction of the economy and thus causes a (leftward shift of )the money demand curve.

b. An increase in technology which makes it easier to pay for goods and services without carrying lots of cash leads to a reduction in the desire to hold money and causes a(leftward shift of)the money demand curve.

c. A decrease in interest rates leads to higher desire to hold wealth as there is less incentive to invest or save and this causes a (movement along) the money demand curve.

d. An increase in the aggregate price level causes a greater demand for money and a (rightward shift of)the money demand curve.

Answer from: Quest

The federal reserve took an expansionary approach during the crisis. this was done by expanding the money supply and boosting liquidity. this can be seen in the fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. the fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.

Answer from: Quest

answer; read and consider the content of the items;

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Select an answer which correctly completes the following statements.
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