When the Nominal Interest Rate Rises, the Quantity of Money

question 82

Multiple Choice

When the nominal interest rate rises, the quantity of money demanded decreases because

• A) people will buy fewer goods and hence hold less money.
• B) the price level also rises and people decrease their demand for money.
• C) people shift funds from interest-bearing assets into money.
• D) people shift funds from money holdings to interest-bearing assets.

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Definitions:

Comatose Patient

A patient in a prolonged state of unconsciousness, unable to respond to external stimuli.

Ventilator Lying Supine

The position of a patient lying flat on their back while receiving mechanical ventilation.

Rhonchi

Low pitched, rattly or purring sounds heard in the lungs with a stethoscope, as a result of airway blockage or narrowing.

Hypostatic Pneumonia

A form of pneumonia that results from the pooling of secretions in the lungs due to prolonged bed rest or immobility.