A Business Cycle Expansion Increases Income,causing Money Demand to ________

question 65

Multiple Choice

A business cycle expansion increases income,causing money demand to ________ and interest rates to ________,everything else held constant.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease; increase

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Definitions:

Semilunar Valves

Heart valves located at the exits of the right and left ventricles, preventing backflow of blood into the ventricles after contraction; they include the aortic and pulmonary valves.

Stethoscope

A medical instrument used for listening to the internal sounds of an organism, such as heart and lung sounds.

Terminal Branch

The terminal branch is the end part of a nerve or a blood vessel that does not continue further or branch out again.