An increase in the money supply will have what affect on the money supply curve?Multiple choice question.It will make it steeper.It will shift it right.It will make it flatter.It will shift it left.

Suppose that the Federal Reserve increases the money supply. This action will:not affect the LM curve.shift the LM curve downward (or rightward).make the LM curve steeper.make the LM curve flatter.

If the interest rate increases, thenGroup of answer choicesthere will be an upward movement along the money demand curve.there will be a downward movement along the money demand curve.the money demand curve will shift to the right.the money demand curve will shift to the left.

A change in any one of the components of will directly affect the money supply. (Put in the measure which is relatively broad.)

If the demand for money depends positively on real income and depends inversely on the nominal interest rate, what will happen to the price level today, if the central bank announces (and people believe) that it will decrease the money growth rate in the future, but it does not change the money supply today? Why?

What will an increase in the money supply tend to do?Multiple ChoiceIncrease interest rates and increase the equilibrium GDP.Lower interest rates and increase the equilibrium GDP.Interest rate and equilibrium GDP does not change.Lower interest rates and lower the equilibrium GDP.Increase interest rates and lower the equilibrium GDP.