Warren always carries a one hundred dollar bill in case of emergencies. This is an example of the
A) precautionary demand for money.
B) asset demand for money.
C) transactions demand for money.
D) wealth demand for money.
A
You might also like to view...
Table 5-4 Price Quantity in $ Demanded 80 1 70 2 60 3 50 4 40 5 30 6 20 7 10 8 ? Table 5-4 shows the demand schedule for concert tickets for a particular consumer. What will be this consumer’s surplus if the price of tickets is $50?
A. $200 B. $60 C. $260 D. $210
According to the monetarists and new classical economists,
a. only anticipated monetary policy actions will affect output and employment in the short run. b. only unforeseen monetary policy actions will affect output and employment in the short run. c. both anticipated and unanticipated monetary policy actions will affect output and employment in the short run. d. both anticipated and unanticipated monetary policy actions will affect output but not employment in the short run. e. none of the above.
What is the drawback of analyzing only one round of effects and leaving the feedback effects unobserved?
a. Not all three markets will be analyzed. b. The qualitative effect might be offset by feedback effects. c. The quantitative effect might be overestimated or underestimated. d. All of the above
Suppose the economy is in long-run equilibrium and the government decreases its expenditures. Which of the following helps explain the logic of why the economy moves back to long-run equilibrium?
a. as people revise their price-level expectations upward, firms and workers strike bargains for higher nominal wages. b. as people revise their price-level expectations upward, firms and workers strike bargains for lower nominal wages. c. as people revise their price-level expectations downward, firms and workers strike bargains for higher nominal wages. d. as people revise their price-level expectations downward, firms and workers strike bargains for lower nominal wages.