When the Nominal Interest Rate Rises, the Quantity of Money

question 82

Multiple Choice

When the nominal interest rate rises, the quantity of money demanded decreases because

• A) people will buy fewer goods and hence hold less money.
• B) the price level also rises and people decrease their demand for money.
• C) people shift funds from interest-bearing assets into money.
• D) people shift funds from money holdings to interest-bearing assets.

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Definitions:

Elastic Connective Tissue

A type of connective tissue that is rich in elastic fibers, providing flexibility and strength to the structures it supports.

Marfan Syndrome

Autosomal dominant genetic disorder of the connective tissue, specifically the fibrillin protein.

Sickle Cell Disease

A genetic disorder resulting in red blood cells assuming an abnormal, rigid, sickle shape, leading to various complications including pain and anemia.

Red Blood Cells

Bioconcave cells that carry oxygen throughout the body, using the protein hemoglobin, and are essential for delivering oxygen to tissues.