When the Money Market Is Drawn with the Value of Money

question 75

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,if money supply and money demand both shift to the right

• A)the price level must have risen
• B)the price level must have fallen.
• C)the price level rises if money supply shifts farther than money demand.
• D)the price level falls if money supply shifts farther than money demand.

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Definitions:

Contributed Capital

The total value of cash or other assets that shareholders have given a company in exchange for stock, also known as paid-in capital.

Return on Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how effectively a company uses its assets to generate earnings.

Liabilities

Financial obligations or debts that a company or individual owes to others.

Expenses

Costs incurred in the process of generating revenue, including operating expenses, cost of goods sold, and other overheads.