At Higher Nominal Rates of Interest, the Demand for Real

question 135

Multiple Choice

At higher nominal rates of interest, the demand for real balances is:

• A) higher because savers can earn higher returns.
• B) lower because the opportunity cost of holding those funds is higher.
• C) invariant with respect to the nominal interest rate.
• D) inversely related to the price level.

---

Definitions:

Chromosome 21

One of the 23 pairs of chromosomes in humans, an extra copy of which causes Down syndrome.

Alzheimer's Disease

A progressive neurological disorder that causes memory loss, cognitive decline, and eventual loss of the ability to carry out simple tasks.

Down's Syndrome

A genetic disorder caused by the presence of all or part of an extra 21st chromosome, characterized by physical growth delays, characteristic facial features, and mild to moderate intellectual disability.

APP Gene

A gene on chromosome 21 that encodes the amyloid precursor protein (APP), which is thought to be involved in the pathogenesis of Alzheimer's disease.