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:

Personal Defenses

Legal arguments that an individual can use to avoid enforcement of a contract or document due to personal circumstances, such as fraud, duress, or incapacity.

Restrictive Indorsement

An endorsement on a negotiable instrument (like a check) that limits the way the instrument can be used or further negotiated.

Indorsement Purpose

The reason or intention behind endorsing a document, such as transferring rights or specifying conditions.

Discounts

Reductions in price given to customers, often used as a sales promotion technique.