Holding money as a medium of exchange to make payments is
A. the precautionary demand for money.
B. the capital demand for money.
C. the transactions demand for money.
D. the asset demand for money.
Answer: C
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The unemployment rate generally falls during ________ in the business cycle
A) a peak B) a recession C) a trough D) an expansion
If the U.S. dollar decreases in value relative to other currencies, how does this affect the aggregate demand curve?
A) This will move the economy down along a stationary aggregate demand curve. B) This will shift the aggregate demand curve to the right. C) This will move the economy up along a stationary aggregate demand curve. D) This will shift the aggregate demand curve to the left.
Adhering to a strict fixed exchange rate system means that
a. no country will experience inflation or recession. b. each nation improves control over its money supply. c. each nation loses some control of its monetary policy and its domestic economy. d. each nation improves control over its fiscal policy and aggregate demand.
The elasticity of demand for a normal good: a. is often higher in the short run than in the long run. b. is often lower in the short run than in the long run. c. is the same in the short run as in the long run
d. is zero in the short run and infinite in the long run.