When the Interest Rate Increases, People Will Adjust Their Precautionary

question 52

Multiple Choice

When the interest rate increases, people will adjust their precautionary demand for money

• A) upward.
• B) downward.
• C) not at all.
• D) downward or upward depending upon the actual supply of money.

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Definitions:

Copula

In grammar and logic, a word used to link the subject of a sentence to a subject complement, such as the word "is" in the sentence "The sky is blue."

Categorical Proposition

A statement asserting or denying something about all members of a class, typically structured in standard form with a subject, predicate, and a quantifier indicating universality or particularity.

Affirmative Quality

A property of statements that assert the presence, rather than the absence, of a relationship or a characteristic.

Copula

In grammar and logic, a copula is the word that links the subject of a sentence to a subject complement, such as the verb "to be".