When the Demand for Money Is Shown on a Graph

question 92

Multiple Choice

When the demand for money is shown on a graph, which variable is on the vertical axis and which variable is on the horizontal axis?  

• A) Quantity of money is on the vertical axis, and interest rate is on the horizontal axis. 
• B) Interest rate is on the vertical axis, and quantity of money is on the horizontal axis. 
• C) Price level is on the vertical axis, and quantity of money is on the horizontal axis. 
• D) Quantity of money is on the vertical axis, and price level is on the horizontal axis.

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Definitions:

Endorsement

Signing one's name on the back of a check or other document, authorizing its transfer or acceptance, or the act of publicly supporting a product, service, or candidate.

Cash Receipts

The collection of money, including coins, notes, and electronic payments, received by a business during a given period.

Restricted Cash

Funds that are reserved for a specific purpose and cannot be used for general corporate purposes.

Separately Reported

Financial items or activities that are shown distinctly in financial statements to provide clarity and understanding of a company's financial position.