The transactions demand for money is most closely related to its job as a __________.
Fill in the blank(s) with the appropriate word(s).
medium of exchange
You might also like to view...
Major macroeconomic questions include all of the following EXCEPT:
A. Can inflation be reduced without generating additional unemployment? B. Are free trade agreements beneficial? C. How do monopoly firms set prices and determine quantities to produce? D. What causes slowdowns in productivity growth?
If MUx/Px exceeds MUy/Py, then the consumer should
a. consume more of good X and less of good Y b. consume less of good X and more of good Y c. consume less of both goods X and Y d. not change the consumption levels of X and Y e. consume more of good Z
A movement along the AD curve down and to the right is caused by
a. a rightward shift of the money demand curve b. falling consumer confidence c. a decreasing price level d. expansionary open market transactions by the Fed e. a stable price level and increases in consumption, investment, or government spending
Consumption is spending by: a. households on goods and services
b. households on capital goods and inventories. c. businesses on corporate social responsibility initiatives. d. government on subsidizing consumption goods.