Other Things the Same,a Decrease in the Price Level Motivates

question 87

Multiple Choice

Other things the same,a decrease in the price level motivates people to hold

• A)less money,so they lend less,and the interest rate rises.
• B)less money,so they lend more,and the interest rate falls.
• C)more money,so they lend more,and the interest rate rises.
• D)more money,so they lend less,and the interest rate falls.

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Definitions:

Proportions

Refers to the fractional part of a whole, represented by the ratio of a part to the whole.

Evidence

Information or facts presented in support or against a hypothesis or claim.

Drug

A substance used to diagnose, cure, treat, or prevent disease, or to enhance physical or mental well-being.

Hypotheses

Proposed explanations or predictions that are based on limited evidence as a starting point for further investigation.