If the Money Demand and Money Supply Curves Shift Leftward,we

question 5

Multiple Choice

If the money demand and money supply curves shift leftward,we can conclude that the equilibrium:

• A)interest rate will decline, but we cannot predict the change in the equilibrium quantity of money
• B)quantity of money and the equilibrium interest rate will both increase
• C)quantity of money will increase, but we cannot predict the change in the equilibrium interest rate
• D)quantity of money will decline, but we cannot predict the change in the equilibrium interest rate
• E)quantity of money will stay the same, causing no change in the equilibrium interest rate

---

Definitions:

Plant Asset

A plant asset is a long-term tangible asset used in the operation of a business that is not intended for resale, such as machinery, buildings, and equipment.

Market Value

The immediate cost at which one can buy or sell a service or asset.

IRS

The Internal Revenue Service, the U.S. federal agency responsible for administering and enforcing the tax laws and collecting federal taxes.

Tax Return

A form or forms filed with a government body reporting income, expenses, and other pertinent tax information, used to calculate tax liability.