In the Long Run, the Demand for Real Balances Rises

question 156

Multiple Choice

In the long run, the demand for real balances rises whenever:

• A) nominal interest rates fall.
• B) real GDP rises.
• C) the exchange rate rises.
• D) nominal interest rates fall and real GDP rises.

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Definitions:

Trophoblast

Outer membrane surrounding the embryo in mammals; when thickened by a layer of mesoderm, it becomes the chorion, an extraembryonic membrane.

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A medical test used to determine if a woman is pregnant, typically by detecting the presence of hCG hormone in urine or blood.

Blastocyst

Early stage of human embryonic development that consists of a hollow, fluid-filled ball of cells.

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The early stage of development in humans from the moment of conception until the end of the eighth week, when it is then referred to as a fetus.