When the Money Market Is Drawn with the Value of Money

question 79

Multiple Choice

When the money market is drawn with the value of money on the vertical axis, in which situation does the price level increase?

• A) if either money demand or money supply shifts right
• B) if either money demand or money supply shifts left
• C) if money demand shifts right or money supply shifts left
• D) if money demand shifts left or money supply shifts right

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Definitions:

Quarterly

relating to a three-month period or happening every quarter of a year.

Student Loan

A type of loan specifically designed to help students pay for post-secondary education and the associated fees, such as tuition, books, and living expenses.

Compounded Monthly

Interest calculated on a principal amount and then added to that principal sum at the end of each month, effectively increasing the base for future interest calculations.

Quarterly Contributions

Payments or deposits made into an account or investment fund every three months.