Answer the Question on the Basis of the Following Table

question 70

Multiple Choice

Answer the question on the basis of the following table in which columns (1) and (2) indicate the transactions demand (D_t) for money and columns (1) and (3) show the asset demand (D_a) for money: $\begin{array}{c}\begin{array}{c}(1) \\\underline{\text {Interest Rate}}\\12 \% \\10 \\8 \\6 \\4 \\2\end{array}\begin{array}{c}(2) \\\underline{D_{t} }\\ \$ 100 \\100 \\100 \\100 \\100 \\100\end{array}\begin{array}{c}(3) \\\underline{D_{a}} \\\$ 0 \\20 \\40 \\60 \\80 \\100\end{array}\end{array}$
The given data suggest that the amount of money demanded for transactions:

• A) varies directly with the interest rate.
• B) varies inversely with the interest rate.
• C) varies inversely with nominal GDP.
• D) is independent of the interest rate.

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Definitions:

Sandra Scarr

An American developmental psychologist known for her work on genetic and environmental influences on human development.

Gregor Mendel

A scientist and Augustinian friar who is known as the father of modern genetics for his work on the inheritance of traits in pea plants.

Multifactorial Transmission

The determination of traits by a combination of both genetic and environmental factors in which a genotype provides a range within which a phenotype may be expressed.

Genetic Factors

Elements within an organism's genetic makeup that influence its physical and behavioral traits.