Countries that maintain a constant gold value for their currencies are said to be on a gold standard

The demand curve for money

a. shows the amount of money balances that individuals and businesses wish to hold at various levels of private investment. b. reflects the open market operations policy of the Federal Reserve. c. shows the amount of money that households and businesses wish to hold at various rates of interest. d. indicates the amount that consumers wish to borrow at a given interest rate.

Using the above figure, we can conclude that

A. L is preferred to K. B. the consumer is indifferent between J and M. C. the consumer will purchase goods at combination M. D. K is the optimal combination of goods.