the economics of money, banking, and financial markets

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32. 
    

    An autonomous decrease in money demand, other things equal, shifts the ____ curve to
    the ____.
    A) IS; right
    B) IS; left
    C) MP; left
    D) MP; right
    Answer: D
    Diff: 2 Type: MC Page Ref: 561
    Skill: Applied
    Objective List: 23.1 Apply the IS-MP framework for the determination of aggregate output and
    the interest rate

    
    


33. 
    

    An autonomous increase in money demand, other things equal, shifts the ____ curve to
    the ____.
    A) IS; right
    B) IS; left
    C) MP; left
    D) MP; right
    Answer: C
    Diff: 2 Type: MC Page Ref: 561
    Skill: Recall
    Objective List: 23.1 Apply the IS-MP framework for the determination of aggregate output and
    the interest rate

    
    


34. 
    

    As bonds become a riskier asset, the demand for money ____ and, all else constant, the
    equilibrium interest rate ____.
    A) rises; rises
    B) rises; falls
    C) falls; rises
    D) falls; falls
    Answer: A
    Diff: 3 Type: MC Page Ref: 560 - 561
    Skill: Recall
    Objective List: 23.1 Apply the IS-MP framework for the determination of aggregate output and
    the interest rate