A Change in Financial Technology That Reduces the Need to Hold

question 85

Multiple Choice

A change in financial technology that reduces the need to hold cash balances ________ the demand for money and ________ the equilibrium nominal interest rate.

• A) decreases; lowers
• B) increases; lowers
• C) increases; raises
• D) decreases; raises
• E) decreases; does not change

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Definitions:

Gardner

Howard Gardner is a developmental psychologist best known for proposing the theory of multiple intelligences, which suggests that intelligence is not a single general ability but a combination of various distinct types of cognitive capabilities.

Emotional

Pertaining to one's feelings or affective states, often influencing mood, behavior, and cognitive processes.

Convergent Thinking

A cognitive process in which a person attempts to find a single, correct answer to a problem.

Divergent Thinking

An intellectual strategy or procedure aimed at developing original ideas through the examination of various options.