The Keynesian theory of money demand predicts that people will increase their money holdings if they believe that
A) interest rates are about to fall.
B) bond prices are about to rise.
C) expected inflation is about to fall.
D) bond prices are about to fall.
D
You might also like to view...
If there is an external cost from making paper, an unregulated competitive market produces
A) less than the efficient quantity. B) the efficient quantity. C) more than the efficient quantity. D) a quantity that could be greater than, the same as, or less than the efficient amount.
Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many swords will Estonia consume?
A) 75 B) 100 C) 125 D) 200
Which of the following would most likely be highly price-elastic?
a. The demand for milk by a household b. The demand for insulin by a diabetes patient c. The demand for water d. The demand for new houses e. The demand for coal over a period of one month
The virtual currency battle between Facebook and Zynga reminds us that:
a. Relatively small companies with virtual currencies, like Zynga, have little chance of challenging the demands of large companies, like Facebook, with virtual currency platforms. b. In the future, virtual currencies will be created, destroyed, and evolve in many different ways. c. Community really does follow commerce. d. To gain widespread trust and usage, a virtual currency does not need a large base of users.