If Interest Rates Rise, What Will Happen to Demand for Money

question 45

Multiple Choice

If interest rates rise, what will happen to demand for money?

• A)It will increase.
• B)It will decrease.
• C)Nothing; the economy will move to a new quantity demanded at a new interest rate.
• D)It depends on what happens to other determinants of demand for money like prices or income.

---

Definitions:

Hardy-Weinberg Principle

The concept that in the absence of evolutionary forces, the proportions of both alleles and genotypes within a population will not vary from one generation to the next.

Allele Frequency

The relative frequency of an allele (variant of a gene) at a particular gene locus in a population, important in the study of genetic variation.

Inheritance

The process by which genetic information is passed on from parents to their offspring.

Heterozygote Advantage

A genetic phenomenon where individuals with two different alleles of a particular gene (heterozygotes) have a greater fitness than individuals with two identical alleles (homozygotes).