The Two Most Important Factors That Cause the Money Demand

question 36

Multiple Choice

The two most important factors that cause the money demand curve to shift are

• A) real GDP and the price level.
• B) nominal GDP and the Fed.
• C) the price level and the nominal interest rate.
• D) the nominal interest rate and the money supply.

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Definitions:

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Fixation

In psychology, an obsessive focus or attachment to a person, situation, or stage of development.

Psychosexual Stage

A concept in Freudian psychology referring to a series of developmental stages in childhood, each characterized by a focus on pleasure from a particular body area.

Pleasure-Seeking Energies

An inclination towards actions or experiences that result in enjoyment or satisfaction, driven by internal desires.