When the Money Supply Increases

question 100

Multiple Choice

When the money supply increases

• A)interest rates fall and so aggregate demand shifts right.
• B)interest rates fall and so aggregate demand shifts left.
• C)interest rates rise and so aggregate demand shifts right.
• D)interest rates rise and so aggregate demand shifts left.

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Definitions:

Hydrolysis

Hydrolysis is a chemical reaction in which water is used to break down the bonds of a compound, often splitting molecules into two or more smaller substances.

Alkaline Mucus

A type of mucus that has a higher pH and helps protect mucosal linings from acidic conditions.

Epithelial Cells

Specialized cells that line the surfaces of organs, vessels, and cavities in the body, serving as a protective barrier and involved in absorption, secretion, and sensation.

Intrinsic Factor

A protein produced by the stomach that is essential for the absorption of vitamin B12.