When the Money Market Is Drawn with the Value of Money

question 122

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,a decrease in the price level causes a

• A)movement to the right along the money demand curve.
• B)movement to the left along the money demand curve.
• C)shift to the right of the money supply curve.
• D)shift to the left of the money supply curve.

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Definitions:

Equipment

Tangible assets used in the operations of a business, often having a useful life longer than one year.

Accumulated Depreciation

The aggregate depreciation charged against a tangible asset over its useful life to represent wear and tear.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a fiscal period, determining the net income or loss.

Owner's Capital

The total value of equity that a business owner has invested in their company, which may increase through profits or additional contributions.