Which of the Following Events Would Shift Money Demand to the Left

question 147

Multiple Choice

Which of the following events would shift money demand to the left?

• A)an increase in the interest rate or an increase in the price level
• B)an increase in the interest rate,but not an increase in the price level
• C)an increase in the price level,but not an increase in the interest rate
• D)neither an increase in the interest rate nor an increase in the price level

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Definitions:

Defined Contribution Plan

A retirement plan where the amount contributed is specified, but the future benefit is not, with final benefits depending on investment performance.

Risk-free Return

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government securities.

Standard Deviation

Represents how spread out the numbers in a data set are.

Variable Life Insurance

A type of life insurance where the policyholder can allocate a portion of premium dollars to a separate account comprised of various investment funds.