Refer to the Table

question 188

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Interest Rate } & \text { Asset Demand for Money (Billions) } \\\hline 7 \% & \$ 200 \\\hline 6 & 300 \\\hline 5 & 400 \\\hline 4 & 500 \\\hline\end{array}$$ Refer to the table. Suppose that the transactions demand for money is $300 billion and the money supply is $700 billion. A decrease in the money supply to $600 billion would cause the interest rate to

• A) rise to 7 percent.
• B) rise to 6 percent.
• C) fall to 4 percent.
• D) fall to 5 percent.

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Definitions:

2000 Presidential Election

The United States presidential election held in 2000, notoriously known for its close count and controversy in Florida.

Affirmative Action

Policies and practices within a government or organization seeking to include particular groups based on their gender, race, sexuality, creed, or nationality in areas in which they are underrepresented or have suffered from discrimination.

Nixon Administration

The executive term of President Richard Nixon, who served as the 37th President of the United States from 1969 until his resignation in 1974, notable for significant foreign policy initiatives and the Watergate scandal.

Political Right

Refers to the segment of the political spectrum associated with conservative or right-wing ideologies, emphasizing free market policies, traditional values, and a reduced role for government in economic affairs.