The transactions demand for money is the demand to hold money to
A) make regular, expected purchases. B) purchase bonds when interest rates increase.
C) store one's wealth. D) meet unplanned expenditures.
A
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Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Ingrid decides to try to buy a ticket from a scalper (a person who purchased extra tickets at the box office with the intent to resell them at a higher price). If Ingrid finds someone who is willing to sell her a ticket for $70, she should:
A. purchase the ticket even though doing reduce total economic surplus. B. not purchase the ticket because it is overpriced. C. not purchase the ticket because the cost to the scalper was only $60. D. purchase the ticket because doing so will make her $5 better off.
To differentiate its product, a monopolistic competitive firm will engage in all of the following advertising practices EXCEPT
A) direct marketing. B) mass marketing. C) interactive marketing. D) indirect marketing.
An increase in investment, combined with an increase in imports, would have what effect on aggregate demand? a. AD would increase
b. AD would decrease. c. AD would stay the same. d. AD could either increase or decrease, depending on which change was of a greater magnitude.
The net exports effect is the ____ relationship between net exports and the price level of an economy.
A. inverse B. independent C. direct D. linear