If the Value of a Dollar Falls,then the Quantity of Money

question 151

Multiple Choice

If the value of a dollar falls,then the quantity of money demanded

• A)rises,meaning people want to hold more of their wealth in a liquid form.
• B)rises,meaning people desire to work more so their income rises.
• C)falls,meaning people want to hold less of their wealth in a liquid form.
• D)falls,meaning people want to work less so their income falls.

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Definitions:

Fixed Income

Refers to investment types that provide regular, predetermined returns, such as bonds or fixed deposits.

Utility Maximization

The principle that individuals or firms aim to achieve the highest satisfaction or benefit from their resources and choices under given constraints.

Marginal Utility

This concept refers to the additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Utility Maximization

The process by which individuals or consumers adjust their consumption of goods and services to achieve the highest level of utility or satisfaction.