Which One of the Following Events Will NOT Decrease the Demand

question 135

Multiple Choice

Which one of the following events will NOT decrease the demand for money?

• A)an increase in the aggregate price level
• B)the advent of ATMs
• C)the ability of the stores to process credit cards
• D)a fall in real GDP

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Definitions:

Efficient Scale

The level of production at which a firm achieves the lowest possible cost per unit of output, optimizing its use of resources.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for a given period.

Short-Run Equilibrium

Short-run equilibrium occurs when in a market, the quantity supplied equals the quantity demanded at the current price, before any long-term adjustments are made.

MR > MC

A situation in marginal analysis where the marginal revenue (MR) exceeds the marginal cost (MC), suggesting a potential increase in profitability by expanding production.