In the Money Market, If the Price Level Rises, Then

question 104

Multiple Choice

In the money market, if the price level rises, then the demand for money ________ and the equilibrium nominal interest rate ________.

• A) increases; rises
• B) increases; falls
• C) decreases; rises
• D) decreases; falls
• E) increases; does not change

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Definitions:

Gastroenterologist

A physician specializing in the diagnosis and treatment of diseases of the gastrointestinal tract, including the esophagus, stomach, intestines, liver, and pancreas.

Anesthetist

A specialist who uses medications to cause patients to lose sensation or feeling during surgery.

Phlebotomist

A healthcare professional trained to draw blood for clinical or medical testing, transfusions, donations, or research.

Pathologist

A medical specialist who examines tissues, organs, bodily fluids, and autopsies to diagnose disease and determine cause of death.