In Constructing a Scatter Diagram

question 90

Multiple Choice

In constructing a scatter diagram:

• A) the independent variable should be on the vertical axis.
• B) the independent variable should be on the horizontal axis.
• C) the dependent variable should be on the horizontal axis.
• D) It does not matter which variable goes on which axis.

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Market Interest Rate

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend money in the free market.

Money Demand Curve

A graph that shows the relationship between the quantity of money demanded and the interest rate.

Money Demand

The desire or need to hold money as opposed to investing it, influenced by interest rates and economic activity.