The Money Demand Function Is Negatively Sloped Because the

question 38

Multiple Choice

The money demand function is negatively sloped because the

• A) quantity of money demanded rises as the transactions demand falls.
• B) quantity of money demanded rises as nominal income falls.
• C) quantity of money demanded rises as the interest rate falls.
• D) the speculative demand for money rises as the interest rate rises.
• E) interest rate rises as the general price level falls.

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Definitions:

Bananas

A curved, yellow fruit with a soft, sweet flesh, rich in potassium and commonly consumed worldwide.

Opportunity Cost

The lost benefits of the next best alternative when one alternative is chosen over another.

Price

The amount of funds expected, essential, or submitted in reimbursement for something.

Apples

A type of fruit that is grown on apple trees, known for its sweet taste and nutritional benefits, often consumed fresh or used in various dishes.