The Demand for Money Increases and the Demand Curve for Money

question 120

Multiple Choice

The demand for money increases and the demand curve for money shifts rightward as a result of

• A) an increase in real GDP.
• B) a decrease in the real interest rate.
• C) an increase in the use of credit cards.
• D) a decrease in the price level.
• E) a decrease in the nominal interest rate.

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Definitions:

Corporation

A legal entity recognized by law as separate from its owners, providing limited liability protection to its shareholders.

Legal Entity

A legal entity refers to any company or organization that has legal rights and obligations, including the ability to enter into contracts, sue, and be sued.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Sole Proprietorship

A sole proprietorship is a type of business structure where one individual owns and operates the business, bearing sole responsibility for its assets and liabilities.