An Increase in Real GDP Affects the Demand for Money

question 87

Multiple Choice

An increase in real GDP affects the demand for money because

• A) tax payments rise because more income is earned.
• B) there is an inverse relationship between the quantity of money demanded and nominal GDP.
• C) the larger real GDP, the higher the real interest rate.
• D) at the higher price level, it takes more dollars to make expenditures.
• E) when real GDP increases, more money is needed to make expenditures.

Recognize the linguistic origins and the behavioral implications of emotions.

Understand the concepts of dependent and independent variables in sociological research.

Grasp the importance of sample size and representation in achieving statistically significant results.

Identify and differentiate between various types of variables (independent, dependent, control, and spurious).

---

Definitions:

Productive Efficiency

A situation in which a good or service is produced at the lowest possible cost.

Quantity of Goods

The total number of physical units of a product or commodity that are available in the market.

Desired by Society

Pertains to something that is widely regarded as beneficial or needed by the majority of the community or population.