In the Liquidity-Preference Model, an Increase in Prices Causes

question 2

Multiple Choice

In the liquidity-preference model, an increase in prices causes

• A)both the nominal interest rate and the equilibrium quantity of money to decrease.
• B)the nominal interest rate to increase and the equilibrium quantity of money to remain unchanged.
• C)the nominal interest rate to decrease and the equilibrium quantity of money to remain unchanged.
• D)both the nominal interest rate and the equilibrium quantity of money to increase.

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Definitions:

Guilty

The feeling or acknowledgment of having done something wrong or committed an offense, either legally or morally.

Unsatiated

A feeling of not having one's desires or needs fulfilled.

Glucagon-like Peptide-1

A hormone that aids in regulating glucose levels in the blood by increasing insulin production.

Hypothalamus

A region of the brain responsible for producing hormones that control various bodily functions, including temperature regulation, hunger, moods, and the release of hormones from the pituitary gland.