Identify the Correct Statement About Changes in Money Supply

question 31

Multiple Choice

Identify the correct statement about changes in money supply.

• A)A decrease in money supply causes interest rates to fall.
• B)A decrease in money supply causes investment spending to increase.
• C)A decrease in money supply causes gross domestic product to increase.
• D)A decrease in money supply causes investment spending to decrease.
• E)A decrease in money supply causes aggregate expenditure to increase.

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Definitions:

Self-Actualization

The accomplishment or actualization of individual capabilities and possibilities, viewed as a fundamental motivation or requirement in each person.

Maslow's Needs Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five levels of needs: physiological, safety, love/belonging, esteem, and self-actualization.

Physiological And Safety

Referring to the basic needs outlined in Maslow's hierarchy, including physical well-being and security from physical danger.

Herzberg

Refers to Frederick Herzberg, a psychologist known for his theory on job satisfaction and motivation, distinguishing between hygiene factors and motivators.