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

---

Definitions:

Higher Mental Activity

Complex cognitive processes such as thinking, reasoning, problem-solving, and planning, which distinguish higher animals and humans.

Limbic System

A sophisticated arrangement of nerve systems and connections in the brain, situated around the cortex's perimeter, responsible for basic instincts and emotional states. This system regulates core feelings including pleasure, fear, and rage, as well as basic urges related to eating, sexual activities, asserting dominance, and nurturing offspring.

Corpus Callosum

A large bundle of nerve fibers that connects the left and right hemispheres of the brain, facilitating interhemispheric communication.

Cerebellum

In vertebrates, a brain segment positioned at the skull's back, in charge of orchestrating and controlling movements of muscles.