If Interest Rates Increase, What Will Happen to the Demand

question 175

Multiple Choice

If interest rates increase, what will happen to the demand for reserves?

• A)It will shift outward.
• B)It will shift inward.
• C)Nothing, the economy will move to a new quantity demanded.
• D)It depends on what happens to prices.

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Definitions:

Guided Imagery

A relaxation technique using self-chosen positive images to achieve specific health-related goals (i.e., stress reduction, pain control).

Yoga

A physical, mental, and spiritual practice or discipline that originated in ancient India, involving specific postures, breathing techniques, and meditation.

Holistic Health

A model of health based on the belief that the whole is more than the sum of its parts.

Equilibrium

A state of balance.