Post Utme Ksu 2024 Economics Question 39

Practice objective / multiple choice question 39 from the 2024 Post Utme Ksu Economics examination.

Post Utme Ksu 2024 Economics Objective / Multiple Choice
Question 39 POST_UTME_KSU • 2024 • ECONOMICS • objective

A central bank uses open market operations to increase the money supply. If the demand for money is given by the equation \( M^d = 1000 + 0.5Y \), what will happen to the interest rate?

Answer Options

A. The interest rate will increase
Correct Answer B. The interest rate will decrease
C. The interest rate will remain the same
D. The interest rate will fluctuate
Correct Answer
B
Correct Option:
The interest rate will decrease

About This Question

This is Post Utme Ksu 2024 Economics Question 39. It is one of the objective questions from the 2024 Post Utme Ksu Economics examination.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support