Give five examples of factors that could reduce the demand for money
What will be an ideal response?
Lower price level, lower real income, higher real interest rate, higher expected inflation, lower nominal interest rate on money, lower wealth, lower risk on alternative assets, higher risk on money, increased liquidity of alternative assets, or increased efficiency of payments technologies.
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Skin cancer creates a public health externality
a. True b. False
Government policies that heavily tax some activities while subsidizing others and that fix or control interest rates will result in
a. higher productivity of investment. b. lower productivity of investment. c. no change in the productivity of investment. d. a greater level of investment.
If there is an active surplus (+) of +$30 billion and an actual deficit (-) of -$40 billion, then:
a. The full employment deficit must be -$70 billion. b. The passive deficit (-) must be -$10 billion. c. The full employment deficit (-) must be -$30 billion d. The passive deficit (-) must be -$70 billion. e. The passive surplus (+) must be +$40 billion.
Consider the production possibilities frontier displayed in the figure shown. A society should choose to produce:
A. at any point on the frontier rather than inside it. B. at any point that produce some of each good. C. at point C because it is the safest. D. at point B because it represents the most the society can produce.