When the Money Market Is Drawn with the Value of Money

question 231

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,an increase in the money supply causes the equilibrium value of money

• A)and equilibrium quantity of money to increase.
• B)and equilibrium quantity of money to decrease.
• C)to increase,while the equilibrium quantity of money decreases.
• D)to decrease,while the equilibrium quantity of money increases.

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Definitions:

Enthalpy

A thermodynamic quantity equivalent to the total heat content of a system, representing the amount of energy needed to create a system plus the work needed to make room for it in its environment.

Free Energy

A thermodynamic quantity that represents the amount of work that can be performed by a system at a constant temperature and pressure.

Entropy

Disorderliness; a quantitative measure of the amount of the random, disordered energy that is unavailable to do work.

Cofactor

A nonprotein substance needed by an enzyme for normal activity; some cofactors are inorganic (usually metal ions); others are organic (coenzymes).