If,at Some Interest Rate,the Quantity of Money Demanded Is Less

question 27

Multiple Choice

If,at some interest rate,the quantity of money demanded is less than the quantity of money supplied,people will desire to

• A)sell interest-bearing assets,causing the interest rate to decrease.
• B)sell interest-bearing assets,causing the interest rate to increase.
• C)buy interest-bearing assets,causing the interest rate to decrease.
• D)buy interest-bearing assets,causing the interest rate to increase.

Understand the concept of consumer demand based on income and price fluctuations.

Apply the concept of utility function in determining consumer preferences and demands.

Learn how to calculate the demand for goods based on given utility functions and budget constraints.

Understand the principles and focus of capacity building in communities.

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Definitions:

Merchant

A person or company involved in wholesale trade, especially one dealing with foreign countries or supplying goods to a particular trade.

Consideration

The value (such as money, goods, or services) that is given by one party to another in exchange for a contractual promise.

Consumer Lease

An agreement in which a consumer agrees to rent a good, service, or property for personal, family, or household use for a specified period.

Unconscionability

A term referring to an agreement that is so one-sided or unfair that it shocks the conscience and is therefore unenforceable under the law.