In the analysis of the interest rate effect, when the price level changes, the quantity of money households and firms' want to hold changes in the ______ direction as interest rates, while investment changes in the _____ as the quantity RGDP demanded.
A)Same, same
B)Same, opposite
C)Opposite, same
D)opposite, opposite

Question

In the analysis of the interest rate effect, when the price level changes, the quantity of money households and firms' want to hold changes in the ______ direction as interest rates, while investment changes in the _____ as the quantity RGDP demanded.
A)​Same, same
B)​Same, opposite
C)​Opposite, same
D)​opposite, opposite

Quizplus · Accepted Answer

The quantity of money households and firms want to hold changes in the same direction as interest rates, while investment changes in the opposite direction as the quantity of RGDP demanded.

In the Analysis of the Interest Rate Effect, When the Price