Based on the Given Table, an Increase in the Money

question 284

Multiple Choice

$$\begin{array} { | c | c | c | c | } \hline \text { Interest Rate } & \begin{array} { c } \text { Transactions Demand for } \\\text { Money }\end{array} & \text { Asset Demand for Money } & \text { Money Supply } \\\hline 2 \% & \$ 220 & \$ 300 & 4460 \\\hline 4 & 220 & 280 & 460 \\\hline 6 & 220 & 260 & 460 \\\hline 8 & 220 & 240 & 460 \\\hline 10 & 220 & 220 & 460 \\\hline\end{array}$$ Based on the given table, an increase in the money supply of $20 billion will cause the equilibrium interest rate to

• A) fall by 4 percentage points.
• B) fall by 2 percentage points.
• C) rise by 4 percentage points.
• D) rise by 2 percentage points.

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Definitions:

Criminal Behavior

The engagement in actions that violate laws and are punishable by the state or other authority.

Cross-race Effect

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A treatment model used, especially in cases of substance abuse, where the community itself, through its structure and operations, is the main agent of change.

Recidivism

The act of relapsing into criminal behavior or offending, often measured by re-arrests, reconvictions, or returns to prison.