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An Increase in the Price Level Shifts the Money-Demand Curve

question 33

True/False

An increase in the price level shifts the money-demand curve to the left, making interest rates rise.


Definitions:

Misinformation Effect

The phenomenon in which a person's recall of episodic memories becomes less accurate due to post-event information.

Automatic Processing

The unconscious encoding of incidental or well-learned information without effort.

Effortful Processing

The active and conscious effort to encode or store information in memory.

Iconic Memory

A type of visual sensory memory that holds an exact copy of what is seen for a very brief period of time, usually under a second.

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