If Real Money Demand Increases 5% and Real Money Supply

question 63

Multiple Choice

If real money demand increases 5% and real money supply increases 10%,by about how much does the price level change?

• A)falls 5%
• B)unchanged
• C)rises 2%
• D)rises 5%

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Definitions:

Lymphocytes

A type of white blood cell that is one of the main types of immune cells, responsible for producing antibodies to fight off infections.

Lymph Node

Small mass of lymphoid tissue through which lymph filters; contains many B cells and T cells.

Atherosclerosis

A disease characterized by the buildup of fats, cholesterol, and other substances in and on the artery walls, which can restrict blood flow.

Fibrinogen

A blood plasma protein that's converted into fibrin by thrombin in the blood clotting process, essential for wound healing.