The Aggregate Money Demand Depends on

question 57

Multiple Choice

The aggregate money demand depends on

• A) the interest rate.
• B) the price level.
• C) real national income.
• D) the interest rate, price level, and real national income.
• E) the price level and the liquidity of the asset.

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Definitions:

Going Price

The current market rate at which a particular good, service, or commodity can be bought or sold.

Market

A system or arena in which commercial dealings are conducted, or where supply meets demand.

Equilibrium Quantity

The level of output at which demand and supply in the market balance perfectly, setting the stage for stable prices unless external factors intervene.

Demand Schedule

A table or graph showing the quantity of a good that consumers are willing to purchase at various prices.