What Could Shift the Demand for Money Curve Rightward from the Curve

question 35

Multiple Choice

What could shift the demand for money curve rightward from the curve illustrated in the figure above?

• A)a fall in the nominal interest rate
• B)an increase in real GDP
• C)a decrease in the supply of money
• D)an increase in the supply of money
• E)a fall in the inflation rate

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Definitions:

Immediate Payoff

A benefit or reward that is received right away, without delay.

Society

A group of individuals living together in a more or less ordered community, sharing common traditions, institutions, and values.

Stock Split

Current shareholders are given some number (or fraction) of shares for each share owned. Thus, in a three-for-one split, each shareholder would receive three new shares in exchange for each old share, thereby tripling the number of shares outstanding. Stock splits usually occur when the stock price is outside of the optimal trading range.

Shares

Units of ownership interest in a corporation or financial asset, providing an equal distribution in any profits, if any are declared, in the form of dividends.