Which of the Following Is Correct

question 80

Multiple Choice

Which of the following is correct?

• A)A higher price level shifts money demand rightward.
• B)When money demand shifts rightward,the interest rate rises.
• C)A higher interest rate reduces the quantity of goods and services demanded.
• D)All of the above are correct.

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Definitions:

Simple Interest

Interest calculated on the principal or original amount of a loan or investment, without compounding.

GICs

Guaranteed Investment Certificates (GICs) are Canadian investment vehicles offering a guaranteed rate of return over a fixed period of time.

Investor

An individual or organization that allocates capital with the expectation of achieving a financial return.

Promissory Note

An economic tool comprising a formal pledge by one entity to give a specific amount of money to another, either upon request or at a predetermined future time.