Which of the Following Would Cause a Downward Movement Along

question 115

Multiple Choice

Which of the following would cause a downward movement along the money demand curve?  

• A) an increase in the interest rate 
• B) a decrease in the interest rate 
• C) a decrease in real GDP 
• D) an increase in real GDP

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Definitions:

Journal Entries

The recordings of financial transactions in an accounting system which form the basis of building financial statements.

Semiannual Interest Payments

Semiannual interest payments refer to the practice of paying interest on a loan or bond twice a year.

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental, entitling the holder to interest payments and the return of principal at maturity.

Par Value

The nominal value of a bond or stock as declared by the issuer, which might not correspond with its actual market price.