Ec2050 Chapter 12 Quiz Solutions

Written: Jan 9, 2019 12:48 PM - Jan 9, 2019 1:08 PMSubmission ViewYour quiz has been submitted successfully.Question 12 / 2 pointsThe quantity of money demanded is theA) sum of checkable and savings deposits at banks.B) average daily volume of bank account withdrawals.C) amount that people and businesses choose to hold.D) income and volume of profits that people and businesses would like to receive.E) fraction of cash holdings in an average investment portfolio.Question 20 / 2 pointsThe opportunity cost of holding money is theA) real interest rate.B) time it takes to go to the ATM or bank.C) nominal interest rate.D) inflation rate.E) growth rate of real GDP.Question 32 / 2 pointsThe demand for money curve shows the relationship between the quantity of money demanded andA) the inflation rate.B) the price level.C) real GDP.D) the real interest rate.E) the nominal interest rate.Question 42 / 2 pointsThe supply of money curve isA) upward sloping, showing the influence of the interest rate.B) horizontal because the Fed controls the quantity of money supplied.C) vertical because the quantity of money is fixed at any one moment.D) horizontal because interest rates are fixed at any one moment.E) downward