Which of the Following Is Correct? the Demand for Money

question 113

Multiple Choice

Which of the following is correct? The demand for money

• A) decreases as the price level increases.
• B) increases as real GDP increases.
• C) increases when the nominal interest rate rises.
• D) depends on the quantity of money.

---

Definitions:

Affiliation Need

A psychological drive that motivates individuals to connect, join, or feel part of social groups or communities.

Assertiveness Need

The requirement for developing an ability to express one’s opinions, needs, and feelings in a manner that is confident, calm, and positive.

Cognitive Need

A psychological requirement for understanding, organizing, and making sense of the world.

Establishing Goals

The process of defining clear, achievable objectives to guide personal or professional efforts.