When the Money Market Is Drawn with the Value of Money

question 8

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,the value of money decreases if

• A)either money demand or money supply shifts right.
• B)either money demand or money supply shifts left.
• C)money demand shifts right or money supply shifts left.
• D)money demand shifts left or money supply shifts right.

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Definitions:

Principal Repayment

The process of paying back the original amount borrowed from a lender, excluding interest payments.

Remote Contingent Liability

A potential liability that is considered unlikely to occur and thus is not recorded in financial statements but may be disclosed in the notes.

Disclose Only

A policy or requirement of revealing information without necessitating additional actions or changes based on the disclosure.

Note Issuance

The process of creating and distributing promissory notes, which are written promises to pay a specified sum of money at a future date.