In a Dynamic Model of Money, If Money Supply and Trend

question 32

Multiple Choice

In a dynamic model of money, if money supply and trend output is constant over time

• A)nominal supply of money will increase, while nominal demand for money will be constant.
• B)nominal supply of money will decrease, while nominal demand for money will be constant.
• C)nominal supply of money will be constant, while nominal demand for money will decrease.
• D)both the nominal supply of money and nominal demand for money will be constant.

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Definitions:

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment by converting them into electrical signals for the nervous system.

Muscles

Tissue in the body that contracts to create movement or force.

Position

A specific location or arrangement in space that an object or entity occupies at any given time.

Location

The specific place or position where something exists or is situated.