As the Interest Rate Falls

question 95

Multiple Choice

As the interest rate falls,

• A)the quantity of money demanded falls,which would reduce a shortage.
• B)the quantity of money demanded falls,which would reduce a surplus.
• C)the quantity of money demanded rises,which would reduce a shortage.
• D)the quantity of money demanded rises,which would reduce a surplus.

---

Definitions:

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.

Behaviourism

A theoretical approach in psychology that focuses on observable behaviors rather than internal processes.

Dog Biscuit

A small, hard, and dry snack made specifically for dogs, often used as a form of reward or training aid.

Reward

A benefit or positive reinforcement given for desirable behavior or performance, often used to encourage that behavior to happen again.