The speculative demand for money relates the quantity of money demanded (or held) to
a. the level of income
b. the interest rate
c. the price level
d. the investment opportunity
e. satisfy consumption needs
B
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Assuming all else equal, an increase in the real interest rate will cause:
A) a leftward shift of the credit supply curve. B) a rightward shift of the credit supply curve. C) a downward movement along the credit supply curve. D) an upward movement along the credit supply curve.
Suppose that there is a negative aggregate demand shock and the central bank commits to an inflation rate target. But if the commitment is not credible, then
A) the public's expected inflation will remain unchanged. B) the short-run aggregate supply curve will rise. C) economic contraction will be worse. D) all of the above. E) both B and C.
The sole proprietor faces a disadvantage of limited liability
Indicate whether the statement is true or false
Does a firm's decision to spend money on celebrity endorsers signal about the quality of their product?
What will be an ideal response?