What Happens in the Money Market When There Is a Decrease

question 137

Multiple Choice

What happens in the money market when there is a decrease in the supply of money?

• A) The equilibrium quantity of money increases and the equilibrium interest rate increases.
• B) The equilibrium quantity of money increases and the equilibrium interest rate decreases.
• C) The equilibrium quantity of money decreases and the equilibrium interest rate increases.
• D) The equilibrium quantity of money decreases and the equilibrium interest rate decreases.

---

Definitions:

Autism Spectrum Disorder

A range of neurodevelopmental conditions characterized by challenges with social skills, repetitive behaviors, and communication.

Continuously Rocks

A repetitive movement often seen in individuals as a self-soothing or stimulatory behavior, sometimes associated with autism or distress.

Oppositional Defiant Disorder (ODD)

A behavior disorder in children and teens characterized by persistent patterns of angry, defiant, and vindictive behaviors.

Therapeutic Hold

A technique used in healthcare and mental health settings to safely restrain a patient to prevent harm to themselves or others, often applied in a way to respect the patient's dignity.