If People Increase Their Expected Rate of Interest,the Speculative Demand

question 58

Multiple Choice

If people increase their expected rate of interest,the speculative demand for money curve will _____ and money supply will _____.

• A)shift downward,remain unchanged.
• B)shift upward; remain unchanged.
• C)not be affected; shifts upward.
• D)not be affected; not be affected.

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Definitions:

Minimum Return

The lowest acceptable rate of return on an investment, often used to guide financial decisions and risk management strategies.

Transfer Prices

Prices charged for goods, services or intangible property transferred within an organization between divisions or subsidiaries.

Decentralized Units

Subsections of an organization that operate semi-independently, making their own decisions and handling their specific operations.

Investment Turnover

A financial ratio that measures the efficiency of a company's investment in its assets by comparing net sales to average total assets.