Which of the Following Would Cause the Money Demand Curve

question 93

Multiple Choice

Which of the following would cause the money demand curve to shift to the left?

• A)an open market purchase of Government of Canada securities by the Bank of Canada
• B)an increase in the interest rate
• C)an increase in the price level
• D)a decrease in real GDP
• E)a growing population

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Definitions:

Cost-Minimization Rule

A principle in economics that suggests a firm should produce any given output at the lowest possible cost.

Statements

Assertions or declarations, often formal and written, detailing facts or opinions.

Least Costly Combination

An economic principle that firms seek to achieve by using the combination of factors of production that minimizes their costs while producing a given level of output.

Marginal Product Data

Information regarding the additional output that can be obtained by adding one more unit of a particular input, holding all other inputs constant.