As individuals hold more of their financial assets in the form of money market accounts and mutual funds, the velocity of money will decrease

When interest rates rise, the transactions demand for money usually

A) decreases. B) increases. C) decreases initially and then increases to the original position. D) does not change.

The horizontal segment of the aggregate supply curve

a. shows that real GDP can increase only by affecting the economy's price level b. shows that real GDP can increase without affecting the economy's price level c. depicts a positive relationship between real GDP and the price level d. depicts a negative relationship between real GDP and the price level e. marks the full-employment level of real GDP