The Aggregate Real Money Demand Schedule L(R,Y)

question 62

Multiple Choice

The aggregate real money demand schedule L(R,Y)

• A) slopes upward because a fall in the interest rate raises the desired real money holdings of each household and firm in the economy.
• B) slopes downward because a fall in the interest rate reduces the desired real money holdings of each household and firm in the economy.
• C) has a zero slope because a fall in the interest rate keeps constant the desired real money holdings of each household and firm in the economy.
• D) slopes downward because a fall in the interest rate raises the desired real money holdings of each household and firm in the economy.
• E) slopes downward because a rise in the interest rate makes consumers less focused on the liquidity of their assets.

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Definitions:

Concurrent Validity

The degree to which the results of a test correlate with the results of other established measures taken at the same time.

Test-retest Reliability

Test-retest reliability is a measure of the consistency of a psychological test or assessment's results over time when administered to the same individuals on separate occasions.

Content Validity

pertains to how well a test measures every aspect of the specified domain or topic it is intended to assess.

Concurrent Validity

The extent to which test scores correlate with scores from other assessments measuring the same construct at the same time.