If individuals are holding more money than they desire
A) they will attempt to reduce their liquidity by using money to purchase goods.
B) they will attempt to reduce their liquidity by using money to purchase interest-bearing assets.
C) they will attempt to reduce their liquidity by converting real money holdings into nominal money holdings.
D) they will keep their holdings constant.
B
You might also like to view...
Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W30X30 What price will Campus Books charge if it must charge a single price to all of its customers?
A. $36 B. $24 C. $10 D. $18
In the supply curve, the relationship between price and quantity supplied is
a. inverse. b direct. c. nonexistent. d. not determined.
In the Keynesian model, the I = S equation, where I is intended investment and S is actual saving, describes the economy in macroequilibrium
Indicate whether the statement is true or false
Gross exports for the United States depend most directly on the
A. Spending behavior of foreign consumers and businesses. B. Spending behavior of U.S. government agencies. C. Spending behavior of U.S. consumers. D. Level of U.S. GDP.