The quantity of money demanded to satisfy transactions needs
a. is intended for unexpected expenditures
b. increases with the level of nominal GDP
c. decreases with the level of nominal GDP
d. is unrelated to either national income or the interest rate
e. varies inversely with the liquidity demand for money.
B
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A) traditional Keynesian and new Keynesian theory B) new Keynesian and real business cycle theory C) real business cycle and traditional Keynesian theory D) traditional Keynesian, new Keynesian and real business cycle theory
The collapse of Enron Corporation is a reminder of the importance of ________
A) moral hazard B) government-directed credit C) energy trading D) transparency
Keynes believed that the precautionary demand for money varied
a. negatively with income. b. positively with income. c. negatively with the interest rate. d. positively with the interest rate. e. Both b and c
In a labor market with one employer, the MLC is
a. above the supply curve of labor b. above the demand curve for labor c. what determines the wage rate d. downward sloping e. horizontal