A Time-Series Graph Showing Total Production in Japan from 1960

question 111

Multiple Choice

A time-series graph showing total production in Japan from 1960 to 2015 shows a positive trend. It is the case that total production

• A) fell every year between 1960 and 2015.
• B) rose every year between 1960 and 2015.
• C) was lower in 2015 than in 1960.
• D) was higher in 2015 than in 1960.

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Definitions:

Equilibrium Interest Rate

The interest rate at which the demand for funds (borrowing) equals the supply of funds (saving), resulting in a stable market condition.

Money Demand

The desire to hold cash or liquid assets based on the trade-off between the liquidity provided by holding money and the foregone interest earnings from not investing it.

Financial Assets

Assets that derive value from contractual claims, such as stocks, bonds, bank deposits, and other investments.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.