The reason that people may not want to hold money is
A) the precautionary demand for money and the risk of being robbed.
B) the opportunity cost.
C) the transactions demand makes it unnecessary.
D) due to the direct relationship between money demand and the interest rate.
B
You might also like to view...
The CPI: a. includes fewer goods and services than the GDP deflator
b. generally rises substantially slower than the GDP deflator during inflationary conditions. c. ignores imported goods purchased by consumers. d. is the broadest generally reported measure of inflation.
Suppose the price of butter falls because milk price supports are removed. Will people's tastes shift away from margarine and toward butter?
The forces of demand and supply ensure that at equilibrium
A. there are no shortages or surpluses. B. there are no shortages, but there may be surpluses. C. there are no surpluses, but there may be shortages. D. there may be shortages or surpluses.
Which of the following examples shows a decrease in total revenue for an elastic price demand?
a. When the price of saws increases by 5 percent, the quantity demanded decreases by 9 percent. b. When the price of nails decreases by 10 percent, the quantity demanded increases by 15 percent. c. When the price of wrenches increases by 8 percent, the quantity demanded decreases by 5 percent. d. When the price of pliers decreases by 3 percent, the quantity demanded increases by 5 percent.