People Will Want to Hold Less Money If the Price

question 67

Multiple Choice

People will want to hold less money if the price level

• A)increases or if the interest rate increases.
• B)decreases or if the interest rate decreases.
• C)increases or if the interest rate decreases.
• D)decreases or if the interest rate increases.

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Definitions:

Economic Report

A document or presentation that provides analysis and information on the economic performance of an economy, sector, or market.

Positive Economics

A branch of economics that focuses on describing and explaining economic phenomena as they are.

Normative Economics

A branch of economics that expresses value judgments about economic fairness or what the economy ought to be like.

Microeconomics

Microeconomics analyzes individual decision makers and markets, focusing on supply and demand, price, and output decisions in individual markets.