Which of the Following Would Cause the Money Demand Curve

question 61

Multiple Choice

Which of the following would cause the money demand curve to shift to the left?

• A)an open market purchase of Treasury securities by the Federal Reserve
• B)an increase in the interest rate
• C)an increase in the price level
• D)a decrease in real GDP

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Definitions:

Bipolar Disorder

A mental health condition characterized by extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).

Manic Episode

A period characterized by abnormally elevated mood, energy, and activity levels, often found in bipolar disorder.

Flamboyant

Tending to attract attention because of their exuberance, confidence, and stylishness; often brightly colored or elaborately decorated.

Diathesis-Stress

A psychological theory that explains behavior as a predispositional vulnerability together with stress from life experiences.