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Section 1. Try This Determinants of Demand for and Supply of Money

Section 1. Try This Determinants of Demand for and Supply of Money

Q Question 1 The size of the M1 aggregate in January 2006 was $1,382 billion. The size of the aggregate in January 2005 was $1,367 billion. This change in size shows a(n) ___________.

Q Question 2 During a year, the economy experiences a significant increase in nominal GDP. This increase leads to a(n) ___________. Question 3 During a year, the interest rate in the economy rises. This rise leads to a(n) ___________. Question 4 During a three-year period, the interest rate in the economy drops significantly. This drop leads to a(n) ___________. Question 5 In 2001, the US economy experienced a substantial decrease in nominal GDP. This decrease led to a(n) ___________.

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1.increase in the money supply 2.increase in the demand for money 3.increase in the demand for money 4.decrease in the demand for money 5.decrease in the demand for money