When the Money Market Is Drawn with the Value of Money

question 234

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,if money demand shifts leftward,then initially there is an

• A)excess demand for money which causes the price level to rise.
• B)excess demand for money which causes the price level to fall.
• C)excess supply of money which causes the price level to rise.
• D)excess supply of money which causes the price level to fall.

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Definitions:

Semantic

Relating to meaning in language or logic, especially the meaning of words and phrases in context.

Structural

Relating to the arrangement of and relations between the parts or elements of something complex.

Phonemic

Refers to the smallest unit of sound in a language that can change the meaning of a word.

Dual-Coding Theory

A theory proposing that both visual imagery and verbal information are used to represent information, suggesting that information is stored in long-term memory in two distinct forms: auditory (verbal) codes and visual (imagery) codes.