In the Basic Closed-Economy ISLM Model,the Money Demand Is a Function

question 16

Multiple Choice

In the basic closed-economy ISLM model,the money demand is a function of

• A)output.
• B)money supply.
• C)interest rates.
• D)both A and C.

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Definitions:

Demand

The volume of goods or services consumers are prepared and able to buy across a range of prices within a certain timeframe.

Increase

To increase or cause to increase in magnitude, quantity, intensity, or scope.

Alfred Marshall

A prominent British economist known for his work in microeconomics and for developing the concept of price elasticity of demand.

Economist

A professional in the social science discipline of economics, specializing in the analysis and interpretation of economic phenomena.