When the Money Market Is Depicted in a Diagram with the Value

question 178

Multiple Choice

When the money market is depicted in a diagram with the value of money on the vertical axis, which statement best describes the money demand function?

• A) It slopes upward because at higher prices people want to hold more money.
• B) It slopes downward because at higher prices people want to hold more money.
• C) It slopes downward because at higher price people want to hold less money.
• D) It slopes upward because at higher prices people want to hold less money.

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Definitions:

Virginia Company

An English joint stock company established in the early 17th century that founded the first permanent English settlement in America at Jamestown, Virginia.

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The area colonized by France in North America during a period extending from the exploration of the Saint Lawrence River by Jacques Cartier in 1534 to the cession of New France to Great Britain and Spain in 1763.

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Members of the Catholic Church sent to propagate the faith and perform humanitarian work among non-Christian populations, historically involved in global evangelism.

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The historical political regime of France characterized by a succession of monarchs, starting with Clovis and ending with Louis-Philippe in 1848 when the monarchy was finally abolished.