Everything Else Held Constant,an Increase in Currency Holdings Will Cause

question 188

Multiple Choice

Everything else held constant,an increase in currency holdings will cause

• A)the money supply to rise.
• B)the money supply to remain constant.
• C)the money supply to fall.
• D)checkable deposits to rise.

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Definitions:

Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price or other economic factors.

Demand

The desire of purchasers, consumers, or clients for a particular good or service, coupled with the ability and willingness to pay for it.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Elastic

Describes a situation in which the supply or demand for a good or service significantly changes in response to price changes.