A Decline in the Expected Inflation Rate Causes the Demand

question 73

Multiple Choice

A decline in the expected inflation rate causes the demand for money to ________ and the demand curve to shift to the ________,everything else held constant.

• A) decrease; right
• B) decrease; left
• C) increase; right
• D) increase; left

---

Definitions:

Increased Profits

A rise in the amount of net earnings gained from business operations after all costs have been subtracted.

Indirect Exporting

A form of exporting where a company sells its products to a third party, such as an export intermediary, who then sells the products in foreign markets.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, or artistic fields.

Royalty

A payment made to an owner of certain types of rights, such as patents, copyrights, or natural resources, for the right to use those rights.