People hold money because it is liquid and lacks risk under the
A. precautionary demand for money.
B. money balance demand for money.
C. asset demand for money.
D. transactions demand for money.
Answer: C
You might also like to view...
Arguments for adopting a policy rule include
A) the time-inconsistency problem can lead to poor economic outcomes. B) discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run. C) policy makers and politicians cannot be trusted. D) all of the above.
Which of the following events will increase short-run aggregate supply?
A) an advance in technology B) an increase in resource prices C) an increase in the natural unemployment rate D) an increase in foreign income
Which of the following will increase the yield on a bond?
a. a reduction principal b. an increased risk of default c. an increase in the bond's price d. a reduced risk of default e. none of the above
Nondiscriminatory firms hiring in the market place have a cost advantage
a. True b. False Indicate whether the statement is true or false