If Interest Rates Increase, the

question 106

Multiple Choice

If interest rates increase, the

• A) quantity of money demanded will increase.
• B) quantity of money demanded will not change.
• C) money demand function will shift to the right.
• D) quantity of money demanded will decrease.
• E) money demand function will shift to the left.

---

Definitions:

Drives

Internal motivational states created by physiological needs, which direct behavior to fulfill those needs.

Biopsychosocial Model

An interdisciplinary model that looks at the interconnection between biology, psychology, and socio-environmental factors in understanding health and illness.

Diathesis-Stress Model

A psychological theory that explains behavior as a predispositional vulnerability together with stress from life experiences.

Medical Model

A framework for understanding diseases and disorders by focusing on biological factors and excluding psychological, environmental, and social influences.