John gets paid monthly and pays for everything with cash. When he cashes his check he keeps $200 for food, $100 for utilities, $900 for rent, $50 for transportation, $100 for entertainment and $300 for unexpected expenditures
Which of the following statements is TRUE?
A) The transactions demand for money is $1,350, the precautionary demand is $300 and the asset demand is $0.
B) The transactions demand for money is $350, the precautionary demand is $1,150 and the asset demand is $150.
C) The transactions demand for money is $350, the precautionary demand is $950 and the asset demand is $0.
D) The transactions demand for money is $450, the precautionary demand is $300 and the asset demand is $900.
A
You might also like to view...
Institutions that make loans to borrowers and obtain funds from savers are called
A) financial markets. B) financial intermediaries. C) financial conglomerates. D) financial branches.
The wealth of most people declined as a result of the financial crisis of 2007-2009. As a result, which asset was most likely became a larger portion of their portfolio?
A) bonds B) stocks C) house D) checking account
Economists use models to:
a. abstract from the complexities of the world. b. understand economic behavior. c. explain and help predict human behavior. d. do all of these.
When a football manufacturer prices its footballs at $120 each, it has 10 footballs in stock at any given time. However, when the footballs are priced at $144 each, the manufacturer is left with 16 footballs in stock at any given time. What is the price elasticity of supply of the football?
a. 2.54 b. 0.39 c. 2.43 d. 0.45