Explain What Effect Changes in Each of the Following Variables

question 41

Essay

Explain what effect changes in each of the following variables has on the demand for central bank money: (1)the interest rate,i; and (b)real income,Y.

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Definitions:

Voluntary Responses

Reactions that are consciously controlled and performed by an individual in response to external stimuli.

Inborn

Inborn refers to characteristics, traits, or abilities that are present from birth, as opposed to those acquired or learned over time.

Automatic Connection

The unconscious linking of thoughts, emotions, or behaviors based on past experiences, habits, or biological factors.

Previously Established Association

Refers to a link or connection between two concepts, objects, or events that has been formed through experience or learning.