With a Fixed Supply of Money, as GDP Rises, the Demand

question 40

Multiple Choice

With a fixed supply of money, as GDP rises, the demand for money ____ and therefore ____ must rise to encourage savers to hold financial assets instead of cash.

• A) falls; prices
• B) rises; incomes
• C) rises; rates of interest
• D) falls; taxes

---

Definitions:

Familism

A cultural value emphasizing the importance of family connections, loyalty, and solidarity above individual needs.

Hispanic

Referring to people, cultures, or countries originally related to Spain, Spanish language, and culture, or to Spanish-speaking countries, especially in Latin America.

Culture

A set of customs, knowledge, attitudes, and values shared by a group of people and learned through interactions with group members.

Middle Adulthood

The life phase occurring from approximately ages 40 to 65, characterized by personal and professional development, and often involves evaluating life accomplishments.