If the Demand for Money Decreases, but the Fed Keeps

question 53

Multiple Choice

If the demand for money decreases, but the Fed keeps the money supply the same:

• A)interest rates will rise and aggregate demand will fall.
• B)interest rates will rise and aggregate demand will rise.
• C)interest rates will fall and aggregate demand will fall.
• D)interest rates will fall and aggregate demand will rise.

---

Definitions:

Esteem

The respect and admiration that an individual, entity, or concept holds in the opinion of others.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the realization of one's potential and self-fulfillment.

Esteem Needs

According to Maslow's hierarchy of needs, these are the fourth level of human needs, including respect, self-esteem, status, recognition, and strength.

Social Needs

Fundamental human requirements for well-being that include belonging, affection, and social activities, often met through relationships and community involvement.