In Which of the Following Situations Would People Want to Hold

question 4

Multiple Choice

In which of the following situations would people want to hold more money?  

• A) when the price level increases and the interest rate increases 
• B) when the price level decreases and the interest rate decreases 
• C) when the price level increases and the interest rate decreases 
• D) when the price level decreases and the interest rate increases

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Definitions:

Stimulate Innovation

Encourages the development of new ideas, products, or processes to improve efficiency, effectiveness, or competitive advantage.

Infringe on Innovation

To infringe on innovation means to impose restrictions or barriers that limit the development and implementation of new ideas, technologies, or processes.

Pharmaceutical Industry

A sector of the health care system that discovers, develops, produces, and markets drugs or pharmaceuticals for use as medications.

Creative Destruction

A concept in economics which suggests that new innovations destroy old industries and create new economic structures.