Keynes' speculative demand for money arises because
A) individuals are continually trying to maximize their wealth and income.
B) money is necessary to finance transactions.
C) there are costs to switching between money and interest-earning assets.
D) capital gains on bonds held can be made when interest rates are rising.
A
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A rational decision maker compares the expected marginal cost to the expected marginal benefit of any activity
a. True b. False
If coffee and tea are substitutes, then an increase in the price of coffee will result in an increase in the demand for tea.
Answer the following statement true (T) or false (F)
The idea that income redistribution violates the proposition that "one is entitled to the fruits of one's efforts" is a common argument most used
A. in favor of raising the minimum wage. B. in favor of an equal distribution of income. C. in favor of income redistribution. D. against income redistribution.
Contrary to Fogel and Engerman's (1974) claim, most surveyed economists believed that slavery was on the verge of extinction on the eve of the Civil War
Indicate whether the statement is true or false