What are the three motives for holding money?
A) the medium of exchange motive, the store of value motive, and the unit of account motive
B) the transaction motive, the speculative motive, and the liquidity motive
C) the transaction motive, the investment motive, and the liquidity motive
D) the transaction motive, the speculative motive, and the precautionary motive
Ans: D) the transaction motive, the speculative motive, and the precautionary motive
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If everyone has identical preferences over public goods, Lindahl prices for providing the efficient level of the public good will be the same for everyone.
Answer the following statement true (T) or false (F)
Everything else held constant, if consumption expenditure falls by 160 when disposable income falls by 200, the mpc is
A) 0. B) 0.2. C) 0.4. D) 0.8.
Developing countries
a. do not benefit from foreign aid b. do not benefit from private investment c. generate less than half of their annual flow of foreign exchange from exports d. must acquire foreign exchange in order to pay for imports e. need to decrease labor productivity
In Sweden
A. the government has kept unemployment low by offering industry and workers a series of subsidies and incentives. B. education is free from nursery school through college. C. women may take a year off work after child birth while receiving 80 percent of their pay. D. All of the choices are true.