-In the Above Figure, If the Interest Rate Is 8

question 65

Multiple Choice

-In the above figure, if the interest rate is 8 per cent per year, the quantity of money demanded is

• A) greater than the quantity of money supplied, and the demand curve for money will shift.
• B) less than the quantity of money supplied, and the interest rate will change.
• C) greater than the quantity of money supplied, and the supply curve of money will shift.
• D) less than the quantity of money supplied, and the demand curve for money will shift.
• E) greater than the quantity of money supplied, and the interest rate will change.

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Definitions:

Loss

A financial situation in which expenses exceed revenues, indicating negative profitability for a business or investment.

New Firms

Newly established business entities that have recently started operations, contributing to innovation, competition, and economic dynamics.

Existing Firms

Businesses that are already operating within a market, as opposed to new entrants.

Long Run

A period in economics where all factors of production and costs are variable, allowing for complete industry adjustment to changes.