If the Nominal Interest Increases, Then

question 109

Multiple Choice

If the nominal interest increases, then:

• A) the money supply increases.
• B) the money supply decreases.
• C) the demand for money increases.
• D) the demand for money decreases.

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Definitions:

Metric Measurement

A system of measurement based on meters, liters, and grams as units of length, volume, and weight respectively.

Joules

A unit of energy in the International System of Units (SI), equivalent to the energy transferred to an object when a force of one newton moves it one meter in the direction of its application.

U.S. Standard Measurement

A system of measurement used primarily in the United States, including units such as inches, feet, and pounds.