The Effect of a Change in the Money Supply on Interest

question 77

True/False

The effect of a change in the money supply on interest rates will be greater the steeper the demand for money curve.

---

Definitions:

Osmosis

The movement of water molecules through a semi-permeable membrane from a region of lower solute concentration to one of higher concentration, aiming to equalize concentrations.

Selectively Permeable Membrane

A type of biological or synthetic membrane that aids in the selective transfer of substances in and out of cells.

Water

A colorless, transparent, odorless, liquid that forms the seas, lakes, rivers, and rain and is the basis of the fluids of living organisms.

Cytoskeleton

A network of fibers within a cell that provides structural support, cell shape, and enables cell movement.