Along a Downward-Sloping Money Demand Schedule,as the Interest Rate Falls

question 82

Multiple Choice

Along a downward-sloping money demand schedule,as the interest rate falls

• A)the quantity of money demanded falls.
• B)the quantity of money demanded rises.
• C)real income rises.
• D)real income falls.

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Definitions:

Drives

Basic, innate urges that motivate behavior, such as hunger or thirst.

Cognitive-Mediational Theory

A theory in psychology that proposes our emotions are determined by our appraisal of the stimulus, suggesting that thoughts mediate between stimuli and emotional responses.

Appraisal

The evaluation or estimation of the nature, quality, or importance of something or someone.

Extrinsic Motivation

The drive to perform an activity due to external rewards or pressures, rather than for the sake of enjoyment or intrinsic satisfaction.