An Increase in Interest Rates Is Likely to Cause

question 145

Multiple Choice

An increase in interest rates is likely to cause

• A) firms and households to increase the quantity of money demanded.
• B) firms and households to decrease the quantity of money demanded.
• C) the money demand curve to shift to the right.
• D) the money demand curve to shift to the left.

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Definitions:

Round Off

The process of adjusting a numerical value to its nearest specified place value, reducing the digits to the right.

Decimal Places

The count of figures positioned after the decimal point within a number.

Divide

A basic mathematical operation involving the division of one number by another to find a quotient.

Decimal Places

The number of digits to the right of the decimal point in a numerical value.