Which One of These Statements Is Correct

question 23

Multiple Choice

Which one of these statements is correct?

• A)The lower the interest rate,the higher the opportunity cost of holding assets in the form of money.
• B)The quantity of money supplied is independent of the interest rate.
• C)The larger the supply of money,the higher the interest rate,all things equal.
• D)Travelers checks and government bonds are equally liquid assets.
• E)The demand for money increases whenever the price level decreases.

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Definitions:

Cultural Rules

Norms and guidelines that dictate acceptable behavior within a society or community, often passed down through generations.

Symbolic Interaction

A sociological perspective asserting that people give meaning to objects, events, and behaviors, and that these meanings are created and maintained through symbolic interaction and communication.

Societies

Human associations characterized by patterns of relationships between individuals sharing distinct cultures, institutions, and norms.

Actions and Interactions

The processes by which individuals take part in social behaviors (actions) and respond to one another (interactions), shaping social relationships and structures.