When the Money Market Is Depicted in a Graph with the Value

question 129

Multiple Choice

When the money market is depicted in a graph with the value of money on the vertical axis, as the price level increases, how does the quantity of money demanded or supplied change?

• A) The quantity of money demanded increases.
• B) The quantity of money demanded decreases.
• C) The quantity of money supplied increases.
• D) The quantity of money supplied decreases.

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Definitions:

Granite

A hard, granular, intrusive igneous rock composed mainly of quartz, mica, and feldspar.

Isotopes

Variants of chemical elements that have the same number of protons but different numbers of neutrons in their nuclei, affecting their atomic mass but not their chemical properties.

Conglomerate

A coarse-grained sedimentary rock composed of rounded fragments or clasts of pre-existing rocks cemented together.

Unconformity

A geological surface that represents a time gap in the rock record, often where older rocks are overlain by much younger rocks without intermediate layers.