Which of the Following Statements Is True?​

question 74

Multiple Choice

Which of the following statements is true?​

• A)The quantity of money demanded varies directly with the nominal rate of interest.
• B)Money market equilibrium occurs at the nominal interest rate where the aggregate demand equals the quantity of money supplied
• C)Rising national income will decrease the demand for money, leading to a new higher equilibrium nominal interest rate in the short run
• D)Rising national income will increase the demand for money, leading to a new lower equilibrium real interest rate in the short run.
• E)Rising national income will shift the money demand curve to the right, leading to a new higher equilibrium nominal interest rate in the short run.

---

Definitions:

Differential Cost

The difference in total cost that will result from selecting one alternative over another.

Differential Analysis

The area of accounting concerned with the effect of alternative courses of action on revenues and costs.

Unprofitable Segment

A division or business unit within a company that does not generate profits and may incur losses.

Plant Assets

Long-term tangible assets that are used in the operations of a business and are not intended for resale, such as machinery, buildings, and land.