The transactionary demand for money is

(a) An active balance.
(b) Directly related to interest rates.
(c) Negatively related to income.
(d) An idle balance


Answer: (a) An active balance.

Economics

You might also like to view...

Figure 4.5 illustrates a set of supply and demand curves for hamburgers. A decrease in demand and a decrease in quantity supplied are represented by a movement from

A) point a to point c. B) point d to point b. C) point b to point c. D) point c to point a.

Economics

A new chain-weighted measure of real GDP

a. was introduced by the Bureau of Economic Analysis in 1995. b. uses the average of prices in a given year and prices in the previous year instead of using prices in a base year as weights. c. differs greatly from previous measures that utilized the base year method. d. Both a and b e. All of the above

Economics

Protection of a new industry until it becomes strong enough to compete is called

A) the national defense argument. B) the government indirect tax argument. C) the leveling-the-playing-field argument. D) the infant-industry argument.

Economics

Exhibit 7-13 Price and cost per unit curves ? In Exhibit 7-13, the firm's short-run supply curve is the marginal cost curve above point

A. A. B. B. C. C. D. D.

Economics