When a Graph of the Money Market Is Drawn with the Value

question 95

Multiple Choice

When a graph of the money market is drawn with the value of money on the vertical axis, what will happen if the value of money is below the equilibrium level?

• A) The price level will rise.
• B) The value of money will rise.
• C) Money demand will shift left.
• D) Money demand will shift right.

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Definitions:

Public Company Accounting Oversight Board

A regulatory body established by Congress to oversee the audits of public companies in order to protect investors and the public interest.

Return on Assets Ratio

An indicator of how profitable a company is relative to its total assets, measuring the efficiency of asset use.

Operating Income

The income produced from the normal operations of a company, subtracting operating expenses from gross profit.

Average Total Assets

A measure used to evaluate a company's efficiency and profitability, calculated by averaging the total assets at the beginning and end of an accounting period.