In the Liquidity-Preference Model, the Slope of the Money Supply

question 56

Multiple Choice

In the liquidity-preference model, the slope of the money supply curve implies that

• A)money demand varies directly with the nominal interest rate.
• B)money supply varies directly with the nominal interest rate.
• C)nominal interest rate has no effect on the money demand.
• D)nominal interest rate has no effect on the money supply.

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Definitions:

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to, and removing waste from, the fetus.

Trophoblast

A layer of cells surrounding the blastocyst in early development that provides nutrients to the embryo and develops into part of the placenta.

Inner Cell Mass

The inner cell mass is a group of cells inside the primordial embryo that will eventually develop into the fetus.

Germ Layers

The three primary layers of cells (ectoderm, mesoderm, and endoderm) in an embryo that develop into all organs and tissues of the body.