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:

Transition Zone

An area or region between two distinct spaces, phases, or conditions in various contexts, including geography, biology, and materials science.

Ecosystems

Communities of living organisms interacting with their physical environment, forming a system of energy flow and nutrient cycling.

Ecotone

A transition area between two biological communities where different ecosystems meet and integrate, often rich in species diversity.

Marine Snow

The organic debris (plankton, dead organisms, fecal material, etc