When Real GDP Increases, the Demand for Money ________ And

question 150

Multiple Choice

When real GDP increases, the demand for money ________ and, as a result, the equilibrium nominal interest rate ________.

• A) rises; decreases
• B) rises; increases
• C) falls; decreases
• D) falls; increases
• E) rises; probably changes but more information is needed to determine if it rises or falls

---

Definitions:

Direct Experience

Direct experience refers to knowledge or competency gained through personal involvement or participation, as opposed to learning through observation or second-hand information.

Accessible Attitude

Accessible attitude refers to an attitude that is easy to recall from memory due to its frequency of activation or the strength of associated beliefs and experiences.

Correspond With Behaviour

To match or align with actions; the degree to which stated beliefs or attitudes are reflected in one’s actions.

Recall

The act of retrieving information or memories from the past without the aid of external cues.