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True / False Questions (If your answer is true please write T or true, or if it is wrong write For False at the end of your question) 1

Economics

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True / False Questions (If your answer is true please write T or true, or if it is wrong write For False at the end of your question) 1. The Business cycle is at its expansionary peak when the economy is at or near full employment 2. The quantity of asset demand for money that people wish to hold increases as the rate of interest falls. 3. The interest rate is determined by savings and investment 4. An interest rate above equilibrium will lead to a surplus of money. 5. If there is a shortage of money in the economy, the Bank of Canada will increase the amount supplied. 6. An increase in real GDP will cause an increase in interest rates. 7. The Keynesian transmission process refers to the way in which changes in interest rates affect the demand for bonds and their prices. 8. An increase in the money supply, according to Keynes, will cause investment and real GDP to increase. 9. The velocity of money refers to the number of times a particular product is bought and sold in the period of a year. 10. If the annual inflation rate is 7 percent, then the price level will double in ten years.