Which of the Following Properly Describes the Interest-Rate Effect

question 79

Multiple Choice

Which of the following properly describes the interest-rate effect?

• A)A higher price level leads to higher money demand;higher money demand leads to higher interest rates;a higher interest rate increases the quantity of goods and services demanded.
• B)A higher price level leads to higher money demand;higher money demand leads to lower interest rates;a higher interest rate reduces the quantity of goods and services demanded.
• C)A lower price level leads to lower money demand;lower money demand leads to lower interest rates;a lower interest rate reduces the quantity of goods and services demanded.
• D)A lower price level leads to lower money demand;lower money demand leads to lower interest rates;a lower interest rate increases the quantity of goods and services demanded.

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Definitions:

Phytophthora

A genus of plant-damaging oomycetes, commonly referred to as water molds, responsible for a range of plant diseases.

Axopods

Long, thin extensions of certain protozoans, such as those in the phylum Actinopoda, used for feeding and movement.

Test

A shell.

Actinopods

Protists characterized by axopods that protrude through pores in their shells. See rhizarians.