The portfolio theories of money demand state that when income (and therefore, wealth) is higher, the demand for the money asset will ________ and the demand for real money balances will be ________

A) rise; higher
B) rise; lower
C) fall; higher
D) fall; lower


A

Economics

You might also like to view...

The strong cyclical pattern in consumer ________ spending strengthens the case for policy ________

A) nondurables, activism B) nondurables, rules C) durables, activism D) durables, rules E) services, rules

Economics

Money is almost always used to quote prices. This illustrates the function of money as a

a. medium of exchange. b. store of value. c. unit of account. d. commodity value.

Economics

The difference between average total costs and average variable costs is:

A. marginal cost. B. fixed cost. C. average fixed cost. D. None of the statements is correct.

Economics

Which of the following is a statement with positive economic analysis?

A. Lower wages increase employment and reduce the unemployment rate. B. A reduction in the size of the budget deficit will reduce interest rates. C. Slower money growth reduces inflation. D. All of these

Economics