When the Money Market Is Drawn with the Value of Money

question 122

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,a decrease in the price level causes a

• A)movement to the right along the money demand curve.
• B)movement to the left along the money demand curve.
• C)shift to the right of the money supply curve.
• D)shift to the left of the money supply curve.

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Definitions:

Detachment

Lack of willfulness or emotional concern. Detachment through ascetic denial (or, failing that, aesthetic contemplation) was proposed by the great pessimist Arthur Schopenhauer as a method of responding to the fact that life is filled with frustration due to our incessant irrational desires. Schopenhauer’s answer is similar to that of the ancient philosophy called Stoicism, which also teaches that most of our passions are irrational and are best ignored through the detachment and commitment to reason.

Golden Rule

A moral principle that suggests treating others as one would like to be treated themselves.

Daoism

A philosophical and religious tradition rooted in Chinese culture that emphasizes living in harmony with the Dao, which is the fundamental nature of the universe.

Confucianism

East Asian philosophy–religion based on the teachings of the Chinese philosopher Confucius (551–479 BCE). Confucianism is concerned with harmonious social and political relationships, good leadership, and getting along with others through cultivating personal virtue. The central question in Chinese thought generally is the ethical question of what is the good life. For Confucius, the answer was to live in harmony with other human beings, and his philosophy focuses on “the Way” (Dao or Tao) to do that.