An Increase in the Interest Rate Causes

question 212

Multiple Choice

An increase in the interest rate causes

• A)a movement up along the money demand curve.
• B)a movement down along the money demand curve.
• C)the money demand curve to shift to the left.
• D)the money demand curve to shift to the right.

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Definitions:

Institution-To-Institution Trading

The buying and selling of securities between institutional investors, like pension funds and mutual funds, rather than individual investors.

Brokers

Intermediaries that facilitate buying and selling of securities, commodities, or other financial instruments for a commission.

Proprietorship

A business entity owned and run by one individual where there is no legal distinction between the owner and the business.

Taxed

Subjected to a financial charge or levy by a governmental authority on income, property, or sales.