When the Interest Rate Increases, People Will Adjust Their Precautionary

question 52

Multiple Choice

When the interest rate increases, people will adjust their precautionary demand for money

• A) upward.
• B) downward.
• C) not at all.
• D) downward or upward depending upon the actual supply of money.

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Definitions:

Cervicis

Refers to muscles located in the neck region, specifically involved in movements and support of the cervical spine.

Pelvic Floor

The muscles and connective tissues that support the organs of the pelvis, including the bladder, intestines, and, in females, the uterus and vagina.

Pubococcygeus

A muscle of the pelvic floor that supports pelvic organs and is involved in controlling the flow of urine and contractions during orgasm.

External Anal Sphincter

This is a muscle that surrounds the anal canal, allowing control over the expulsion of feces from the body.