The Evidence on the Interest Sensitivity of the Demand for Money

question 14

Multiple Choice

The evidence on the interest sensitivity of the demand for money suggests that the demand for money is ________ to interest rates,and there is ________ evidence that a liquidity trap exists.

• A)sensitive;substantial
• B)sensitive;little
• C)insensitive;substantial
• D)insensitive;little

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Definitions:

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, a key mechanism of evolution.

Mutation

A permanent alteration in the DNA sequence that makes up a gene, varying from a single base pair to large sections of a chromosome.

Scale of Nature

A historical concept proposing a hierarchical order of living organisms from simplest to most complex, often associated with pre-Darwinian theories of evolution.

Aristotle

An ancient Greek philosopher and polymath, whose extensive writings cover diverse subjects including physics, biology, metaphysics, logic, ethics, and politics, significantly influencing Western intellectual history.