What do economists mean by the demand for money?
What will be an ideal response?
Answer: It is the amount of money-currency and checking account deposits- that individuals hold
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If a tax cut increases people's labor supply, then
A) tax cuts increase potential GDP. B) tax cuts decrease aggregate demand. C) tax cuts decrease potential GDP because the real wage rate falls. D) tax cuts cannot affect aggregate demand. E) Both answers B and C are correct.
If the 12-month interest rates for the United States and the United Kingdom are 6% and equal, and £1 = $2 in the spot market, then what do you expect the 12-month forward rate to be?
A) 2.10 B) 1.90 C) 2.00 D) 2.11
An increase in which of the following will shift the economy's productivity (GDP/L) curve?
a. the quantity of laborers b. technology c. capital d. output e. consumption
One economically valid approach to regulation is simply to break all large firms into many smaller ones
a. True b. False Indicate whether the statement is true or false