The Quantity of Liquid Financial Assets Created by the Private

question 50

Multiple Choice

The quantity of liquid financial assets created by the private sector is

• A) an increasing function of the interest rate.
• B) unrelated to the interest rate.
• C) dependent on the technology for converting cash to liquid assets.
• D) held constant.
• E) a decreasing function of the interest rate.

---

Definitions:

Individualism

A social philosophy prioritizing the liberty of persons above the governance or regulation by communal or state powers.

Collectivism

The practice or principle of giving a group priority over each individual in it.

Interdependence

A reciprocal relation between interdependent entities (objects or individuals or groups) where they rely on each other to a significant extent.

Independence

The condition or quality of being free from dependence, control, or influence.