Figure 34-2

question 138

Multiple Choice

Figure 34-2. On the left-hand graph, MS represents the supply of money and MD represents the demand for money; on the right-hand graph, AD represents aggregate demand. The usual quantities are measured along the axes of both graphs.

-Refer to Figure 34-2. As we move from one point to another along the money-demand curve MD1,

• A) the price level is held fixed at P1.
• B) the interest rate is held fixed at r1.
• C) the money supply is changing so as to keep the money market in equilibrium.
• D) the expected inflation rate is changing so as to keep the real interest rate constant.

---

Definitions:

Obsessive Thought

Persistent, unwanted, and intrusive ideas or impulses that can cause significant anxiety or distress.

Relaxation Technique

Strategies or exercises designed to reduce stress and anxiety, helping individuals achieve a state of calm.

Personal Space

The physical area surrounding an individual that they regard as psychologically theirs, invasion of which can lead to discomfort or anxiety.

Patient's Safety

The reduction of risk of unnecessary harm to an acceptable minimum in the healthcare setting, ensuring the well-being of patients.