Ask Question
BusinessBusiness
23 October, 01:13

Which of the following is correct?

A. A higher price level shifts money demand rightward.

B. When money demand shifts rightward, the interest rate rises.

C. A higher interest rate reduces the quantity of goods and services demanded.

D. All of the above are correct.

+5
Answers (1)
  1. 23 October, 01:40
    0
    Answer: the correct answer is D. All of the above are correct.

    Explanation:

    A higher price level means prices are higher and I need more money to buy the same things so the demand goes up and A. is correct.

    Interest rate is the price of money and if the demand for any good or service goes up, then the price of it goes up, too (ceteris paribus = all else remain constant) and B is correct.

    If the interest rate goes up means that money is expensive and I don't want to borrow money so I have less money in my pocket and I can't buy many more things and C is correct so the right answer is D.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following is correct? A. A higher price level shifts money demand rightward. B. When money demand shifts rightward, the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Mouse Inc. uses the alternative method of accounting for prepayments and purchased a $1,200, 6-month insurance policy. The company immediately debited the Insurance expense account. By the end of the period, $400 of the policy had expired.
Answers (1)
If you want to take advantage of compound interest, what should you do when an investment produces interest? a. Use the interest to pay your bills. b. Reinvest the interest. c. Put the interest in a savings account. d.
Answers (1)
Which of the following is NOT a primary goal of competitive marketing intelligence? A. Providing early warnings of opportunities B. Creating an understanding of the business-to-business environment C. Assessing and tracking competitors' actions, D.
Answers (1)
Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2017 Estimated Overhead Expected Use of Cost Drivers per Activity Activity Cost
Answers (1)
Ingrid has been waiting for the show "mamma mia!" to come to town. when it finally does come, tickets cost $60. ingrid's reservation price is $75. but when ingrid tries to buy a ticket, they are sold out.
Answers (1)
New Questions in Business
In which year were tobacco commercials banned from network television in the united states?
No Answers
Maggie's manager notices that she exhibits an external locus of control when she speaks about her work. Her manager should Group of answer choices a. direct Maggie toward a job with more autonomy. b.
Answers (1)
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)
An Insurance company is a business in which it pays to the company if there is a loss, damage, treatments or injury for the payment of premium amount. It calculates the risks that has occurred and pays to compensate the premium amount.
Answers (1)
Home » Business » Which of the following is correct? A. A higher price level shifts money demand rightward. B. When money demand shifts rightward, the interest rate rises. C. A higher interest rate reduces the quantity of goods and services demanded. D.
Sign Up Forgot Password?