If Money Demand Decreases Due to Greater Use of Credit

question 90

Multiple Choice

If money demand decreases due to greater use of credit cards,which of the following would most likely happen under a neutralization policy?

• A) The money supply would decrease,real GDP would not change,and neither would the interest rate.
• B) The money supply would increase,real GDP would not change,and neither would the interest rate.
• C) The money supply would decrease,real GDP would increase,and the interest rate would decrease.
• D) The money supply would increase,real GDP would not change,and the interest rate would decrease.
• E) The money supply would decrease,real GDP would decrease,but the interest rate would not change.

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Definitions:

Friedrich Nietzsche

Friedrich Nietzsche was a 19th-century German philosopher who profoundly impacted existential and nihilistic ideologies with his critique of traditional morals and religion.

Art

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Stoics

Ancient Greek and Roman philosophers who emphasized personal ethics informed by a system of logic and its views on the natural world, advocating for virtue in accordance with reason.

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