An Increase in Nominal GDP Increases the Demand for Money

question 10

Multiple Choice

An increase in nominal GDP increases the demand for money because

• A)interest rates will rise.
• B)more money is needed to finance a larger volume of transactions.
• C)bond prices will fall.
• D)the opportunity cost of holding money will decline.

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Definitions:

Chargeout Rate

The price per unit of time charged for services rendered, often used in professional settings or service-oriented businesses.

Non-profit Entities

Organizations that operate for charitable, educational, cultural, or social welfare purposes rather than for profit.

Service Costing System

An accounting method used for establishing the cost associated with providing a service.

Complexity

Refers to the degree of intricacy, difficulty, or multifaceted nature of a task, system, or situation, which can affect manageability and understanding.