When people hold a specific quantity of money during a specific time period because they expect to use the money to buy a specific value (price times quantity) of goods, we refer to that money holding as satisfying their
a. precautionary demand for money
b. liquidity demand for money
c. saving demand for money
d. speculative demand for money
e. transactions demand for money
E
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It is possible to represent three dimensions on a two-dimensional graph by using
A. a contour map. B. a razor blade. C. curved lines. D. All of these responses are correct.
When the Fed increases the money supply, we expect
a. interest rates and stock prices to rise. b. interest rates and stock prices to fall. c. interest rates to rise and stock prices to fall. d. interest rates to fall and stock prices to rise.
According to the above table, national income is
A. $10,646 billion. B. $13,271 billion. C. $10,770 billion. D. $11,917 billion.
Eliminating double-taxation would likely
a. raise saving and primarily benefit people with lower incomes. b. raise saving but primarily benefit people with higher incomes. c. reduce saving but primarily benefit people with lower incomes. d. reduce saving and primarily benefit people with higher income.