Generally speaking, the greater the amount of financial wealth people hold in the form of near-monies, the:
A. less is their willingness to spend out of their money incomes.
B. less is the asset demand for money.
C. greater is the transactions demand for money.
D. greater is their willingness to spend out of their money incomes.
Answer: D
You might also like to view...
According to the Coase theorem, part of what is needed for private transactions to be efficient is that property rights
A) must be defined, but it does not matter who owns the property. B) must be defined, and it is crucial as to who owns the property. C) need not be defined as long as there are no transactions costs present. D) need to be defined by the government to avoid producers from exploiting high transactions costs.
The monetary-policy framework called inflation targeting is used explicitly by
a. no major country. b. most major countries except the United States and Japan. c. the United States, but it is not used by other major countries. d. most major countries, including the United States and Japan.
Market failure occurs when resources are misallocated.
Answer the following statement true (T) or false (F)
Economists have looked at the reasons why some nations remain poor. What are the "poverty traps" countries can become mired in?
a. Civil war, misuse of resources, and corrupt government b. Civil war, misuse of resources, and stable government c. Overuse of resources and trade d. Ethnic imbalances, high level of natural resources, and pursuit of self-glorification.