When Can We Be Certain That the Quantity of Money

question 58

Multiple Choice

When can we be certain that the quantity of money demanded will decrease?

• A)When nominal GDP decreases and the interest rate increases.
• B)When nominal GDP increases and the interest rate increases.
• C)When nominal GDP decreases and the interest rate decreases.
• D)When nominal GDP increases and the interest rate decreases.

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Definitions:

Reconstruction Amendments

Amendments to the United States Constitution adopted during the Reconstruction era, including the 13th, 14th, and 15th amendments, which abolished slavery, granted citizenship rights, and prohibited voter discrimination based on race.

Federal Government

The national government of a federal country, which has specific powers delegated to it by a constitution, distinguished from state or provincial governments.

Custodian of Freedom

A term that implies the responsibility of protecting and preserving the liberties and rights of a group or nation.

Burlingame Treaty

An 1868 agreement between the United States and China that recognized mutual rights of their citizens and encouraged cultural and commercial exchange.