When the Money Market Is Drawn with the Value of Money

question 168

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,as the price level decreases,the value of money

• A)increases,so the quantity of money demanded increases.
• B)increases,so the quantity of money demanded decreases.
• C)decreases,so the quantity of money demanded decreases.
• D)decreases,so the quantity of money demanded increases.

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Definitions:

Intangible Products

Products that are not physical in nature, such as software, entertainment, or services, offering value through non-physical means.

Insurance

Contract by which the insurer for a fee agrees to reimburse the insured a sum of money if a loss occurs.

Television

A telecommunication medium used for transmitting moving images in monochrome, color, or in three dimensions.