When the Price Level Falls,the ________ Curve for Nominal Money

question 110

Multiple Choice

When the price level falls,the ________ curve for nominal money ________,and interest rates ________,everything else held constant.

• A) demand; decreases; fall
• B) demand; increases; rise
• C) supply; increases; rise
• D) supply; decreases; fall

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Definitions:

Order To Pay

A directive, usually legal or financial in nature, mandating that a certain amount of money must be paid.

Drawer

The person who writes or issues a bill of exchange, check, or draft, instructing a drawee to pay a specified sum to a payee.

Drawee

The party in a financial transaction who is directed to pay a certain amount of money, typically written on a draft or check.

Cashier's Check

A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.