Can you explain the right answer to me? thank you!
1.If output increases and the interest rate
remains constant, there will be:
A) a decrease in the quantity of money supplied.
B) a decrease in the quantity of money demanded.
C) an increase in the quantity of money demanded.
D) an increase in the quantity of money supplied.
2.Money demand is a function of all the following variables except the:
A) tax rate.
B) price level.
C) level of real income.
D) interest rate.
3.Which of the following is a good argument against an independent central bank, it will:
A) keep monetary policy separate from other economic policies.
B) gradually become more dependent on government.
C) have more influence on expectations than a government institution.
D) be concerned to maintain its independence.
4.Under Keynesian assumptions, if there are fixed exchange rates, and there is a fall in demand for exports, current account ________ and the capital account will ________. A) deteriorate; improve
B) equilibrium; deteriorate
C) deteriorate; deteriorate
D) deteriorate; not change much