Which of the Following Statements Is Correct? Other Things Equal

question 176

Multiple Choice

Which of the following statements is correct? Other things equal,

• A)a decline in real output will shift both the transactions demand curve for money and the total money demand curve to the right.
• B)a decline in the interest rate will shift the asset demand curve for money to the right but leave the total money demand curve unchanged.
• C)deflation will shift both the transactions demand curve for money and the total money demand curve to the left.
• D)inflation will shift the transactions demand curve for money to the right but leave the total money demand curve unchanged.

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Definitions:

Political Equals

Political equals refer to individuals or entities possessing the same rights and responsibilities within a political system, emphasizing equality before the law and in the democratic process.

Alexander Hamilton

A founding father of the United States, first Secretary of the Treasury, and influential in the creation of the national banking system and economic policy.

Anti-Federalist

Opponents of the ratification of the U.S. Constitution in the late 18th century, favoring a weaker central government and greater state autonomy.