What is meant by the demand for money?
What will be an ideal response?
Money is used to buy goods and services. So, if we want to purchase something, we must have some money. The demand for money is amount of desired money holdings based on a given income.
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When there is high and variable inflation, markets will adjust toward their equilibrium prices and quantities more erratically and slowly. Additionally, many individual markets will experience a _________ chance of surpluses and shortages.
a. greater b. lower c. reduced d. constant
Suppose profits are less than zero. From this it follows that:
A. the sum of employee compensation, rents, and interest equals aggregate income. B. aggregate income is less than the value of final output. C. aggregate income exceeds aggregate production. D. the sum of employee compensation, rents, and interest exceeds aggregate income.
In a perfectly competitive industry, any restrictions that prevent new firms from entering
A. reduce the average cost of production. B. hinder economic efficiency. C. lead to negative profits. D. guarantee that all existing firms will earn exactly a zero profit.
A nation will neither export nor import a specific product when its:
A. domestic price equals the world price. B. export supply curve lies above its import demand curve. C. export supply curve is upsloping. D. import demand curve is downsloping.