When the Interest Rate Falls in the Money Market, the Quantity

question 82

Multiple Choice

When the interest rate falls in the money market, the quantity of money demanded__________ and the quantity of money supplied__________ .

• A) decreases; increases
• B) increases; decreases
• C) stays the same; decreases
• D) increases; stays the same

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Definitions:

Strong Tones

In communication, strong tones refer to the use of assertive and powerful language to convey a message or express an emotion.

Competence

The ability to do something successfully or efficiently, involving skills and knowledge.

Confidence

A feeling of self-assurance arising from an appreciation of one’s own abilities or qualities.

Mediocrity

The quality of being average or moderate in quality, not outstanding or poor.