Which of the Following Does Not Shift the Money Demand

question 83

Multiple Choice

Which of the following does not shift the money demand curve?

• A) A change in the price level
• B) A change in real income
• C) A change in wealth
• D) A change in national output
• E) A change in the interest rate

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Definitions:

Accounting Profits

The net income of a company determined by subtracting total expenses from total revenues, according to generally accepted accounting principles.

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing profit beyond the normal rate of return.

Opportunity Cost

The loss of potential gain from other alternatives when one particular alternative is chosen.

Savings Account

A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.