Which of the Following Would Cause the Money Demand Curve

question 61

Multiple Choice

Which of the following would cause the money demand curve to shift to the left?

• A)an open market purchase of Treasury securities by the Federal Reserve
• B)an increase in the interest rate
• C)an increase in the price level
• D)a decrease in real GDP

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Definitions:

Hierarchy Of Needs

A psychological motivational theory that describes human needs as a five-level hierarchy represented in the shape of a pyramid.

Self-Determination Theory

Argues that three needs—autonomy, competence, and relatedness—can explain much of human behavior.

Power Motives

The underlying psychological desires that drive individuals to seek control, influence, or authority over others.

Henry Murray

An American psychologist and one of the pioneers of personality psychology known for developing need theory and the Thematic Apperception Test (TAT).