As the Interest Rate Falls

question 95

Multiple Choice

As the interest rate falls,

• A)the quantity of money demanded falls,which would reduce a shortage.
• B)the quantity of money demanded falls,which would reduce a surplus.
• C)the quantity of money demanded rises,which would reduce a shortage.
• D)the quantity of money demanded rises,which would reduce a surplus.

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Definitions:

Shortgrass Prairie

A grassland ecosystem characterized by the dominance of shortgrass species, adapted to arid conditions and grazing pressure, found in the central United States and other parts of the world.

Temperate Grassland

A grassland characterized by hot summers, cold winters, and less rainfall than is found in a temperate deciduous forest biome.

Mediterranean Sea

A sea connected to the Atlantic Ocean surrounded by the Mediterranean region and almost completely enclosed by land.

Chaparral

A biome with a Mediterranean climate (mild, moist winters and hot, dry summers). Chaparral vegetation is characterized by drought-resistant, small-leaved evergreen shrubs and small trees.