If there is a financial panic and increased uncertainty about the returns in the stock market and bond market, what is the likely effect on money demand?
A) Money demand declines first, then rises when inflation increases.
B) Money demand rises.
C) The overall effect is ambiguous.
D) Money demand declines.
B
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A) only if the non-money asset market is in equilibrium. B) whenever the economy is at potential GDP. C) when the cyclical unemployment rate is zero. D) the Fed achieves its target for the expected inflation rate.
The postwar years:
a. ushered in what has been described as an unthinking materialist culture. b. ushered in what has been described as a consumer-oriented society that represented the fulfillment of the American dream. c. featured an unusual deviation from the long-term trend toward smaller families. d. All of the above are correct. e. Only a and b are correct.
The prisoner's dilemma game:
A. is a zero sum game. B. is a game of chance. C. is a game with no dominant strategies. D. is a game with a stable equilibrium.
What are the three major forms of governance and what are their dimensions?