FIGURE 27-1 Refer to Figure 27-1

question 20

Multiple Choice

FIGURE 27-1 Refer to Figure 27-1.Given the money demand curve,M_D,an increase in the quantity of money demanded from M₁ to M₀ can be caused by

• A)an increase in the price level.
• B)a decrease in the price level.
• C)an increase in real GDP.
• D)an increase in the rate of interest.
• E)a decrease in the rate of interest.

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Definitions:

Taste

One of the five senses, it is the perception of flavor perceived in the mouth and throat on contact with a substance.

Olfaction

The sense of smell, an important sensory system allowing for the detection and identification of odors in the environment.

Audition

The sense of hearing; the perception of sound.

Vestibular Sense

A sensory system responsible for providing our brain with information about motion, head position, and spatial orientation; it also helps with balance and eye movements.