An Increase in the Interest Rate Causes

question 150

Multiple Choice

An increase in the interest rate causes

• A)a movement up along the money demand curve.
• B)a movement down along the money demand curve.
• C)the money demand curve to shift to the left.
• D)the money demand curve to shift to the right.
• E)the money demand curve to become steeper.

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Definitions:

Repetition

The action of repeating something that has already been said or done, often for the purpose of learning or emphasis.

Recall

The cognitive process of retrieving information or memories from the past.

Relearning

The process of regaining knowledge or skills that were previously learned then forgotten, which typically occurs faster than the initial learning.

Recognition

A memory task in which a person must simply identify material as familiar or as having been encountered before.