Write in your own words to avoid
Plagiarism!!
ECS2602
ASSIGNMENT 01
YEAR: 2026
,Question 1
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Question text
In the financial market, the impact of the interest rate on the quantity of money is that ______
Select one:
A.
a decrease in the interest rate increases the amount of money demanded, and a downward movement
along the demand for money curve occurs. As the amount of money demanded increases, so does the
quantity of money since the quantity of money is demand determined.
B.
an increase in the interest rate increases the amount of money demanded, and an upward movement
along the demand for money curve occurs. As the amount of money demanded increases, so does the
quantity of money since the quantity of money is demand determined.
C.
a decrease in the interest rate increases the amount of money demanded, and the demand for money
curve shifts to the right. As the amount of money demanded increases, so does the quantity of money
since the quantity of money is demand determined.
D.
, a decrease in the interest rate increases the amount of money demanded, and a downward movement
along the demand for money curve occurs. As the amount of money demanded increases, the
quantity of money decreases since the quantity of money is demand determined.
Question 2
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Question text
Which one of the following statements is correct?
An autonomous (or exogenous) variable in our model means that the variable _____
Select one:
A.
is determined by the level of income or output in the economy.
B.
is determined by factors such as business confidence, regulations and political influences.
C.
decreases if income in the economy decreases.
D.
increases if income in the economy increases.
Question 3
Not yet answered
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Question text
The demand for money in an economy depends on the _____________ with a positive relationship
and on the ______________ with a negative relationship.
Select one:
A.
interest rate; level of output and income
B.
level of output and income; interest rate
Plagiarism!!
ECS2602
ASSIGNMENT 01
YEAR: 2026
,Question 1
Not yet answered
Marked out of 1.00
Flag question
Question text
In the financial market, the impact of the interest rate on the quantity of money is that ______
Select one:
A.
a decrease in the interest rate increases the amount of money demanded, and a downward movement
along the demand for money curve occurs. As the amount of money demanded increases, so does the
quantity of money since the quantity of money is demand determined.
B.
an increase in the interest rate increases the amount of money demanded, and an upward movement
along the demand for money curve occurs. As the amount of money demanded increases, so does the
quantity of money since the quantity of money is demand determined.
C.
a decrease in the interest rate increases the amount of money demanded, and the demand for money
curve shifts to the right. As the amount of money demanded increases, so does the quantity of money
since the quantity of money is demand determined.
D.
, a decrease in the interest rate increases the amount of money demanded, and a downward movement
along the demand for money curve occurs. As the amount of money demanded increases, the
quantity of money decreases since the quantity of money is demand determined.
Question 2
Not yet answered
Marked out of 1.00
Flag question
Question text
Which one of the following statements is correct?
An autonomous (or exogenous) variable in our model means that the variable _____
Select one:
A.
is determined by the level of income or output in the economy.
B.
is determined by factors such as business confidence, regulations and political influences.
C.
decreases if income in the economy decreases.
D.
increases if income in the economy increases.
Question 3
Not yet answered
Marked out of 1.00
Flag question
Question text
The demand for money in an economy depends on the _____________ with a positive relationship
and on the ______________ with a negative relationship.
Select one:
A.
interest rate; level of output and income
B.
level of output and income; interest rate
