As Aggregate Output Rises,the Demand for Money ________ and the Interest

question 93

Multiple Choice

As aggregate output rises,the demand for money ________ and the interest rate ________,so that money demanded equals money supplied and the money market is in equilibrium.

• A)increases;rises
• B)increases;falls
• C)decreases;rises
• D)decreases;falls

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Definitions:

Monetary Value

The economic worth assigned to goods, services, or assets in terms of currency.

Promissory Estoppel

A legal principle that prevents a person from going back on a promise, even if it was made without formal consideration, if another person reasonably relied on that promise to their detriment.

Accord And Satisfaction

A legal agreement between parties to settle a dispute where one party agrees to accept less than owed to resolve the claim.

Unique Framing

The practice of presenting or structuring information, concepts, or physical items in a distinctive or novel manner that sets them apart.