The Demand for Reserves Increases as the Price Level Rises

question 9

Multiple Choice

The demand for reserves increases as the price level rises because

• A)people want money to buy goods that will appreciate with inflation.
• B)people need more money to finance transactions.
• C)the opportunity cost of holding money increases.
• D)higher prices reduce the value of dollar assets.

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Definitions:

Biohazard Symbol

A symbol that must appear on all containers used to store waste products, blood, blood products, or other specimens that may be infectious.

Human Disease

Any disturbance of a structure or function of the body, typically manifesting by characteristic symptoms and signs, and not resulting directly from physical injury.

MRSA

Methicillin-resistant Staphylococcus aureus, a type of bacteria that is resistant to many antibiotics, making infections difficult to treat.

Microorganism

A microscopic organism, such as a bacteria, virus, fungus, or protozoa, some of which can cause diseases.