The speculative demand for money:
a. involves holding money for unexpected problems.
b. varies inversely with income.
c. varies inversely with the interest rate.
d. varies directly with the transactions demand for money.
e. is only concerned with active money.
c
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Advances in chemical and biological applications before World War I (1914–1918) increased agricultural output per acre
Indicate whether the statement is true or false
An increase in government spending without an accompanying increase in taxes
A) does not increase aggregate demand. B) would effectively eliminate an inflationary gap. C) causes investment spending to increase. D) requires additional government borrowing.
Identify the correct statement
a. The removal of financial market regulations has lowered the probability of a financial crisis to zero. b. Investment in residential housing in the U.S. was less volatile during the era prior to the removal of Regulation Q. c. Investment in residential housing in the U.S. was more volatile after the removal of Regulation Q. d. The removal of financial market regulations lowered output volatility. e. The removal of financial market regulations increased variability in consumer spending.
The key to diversification is that the risks should be:
A. easy to reduce. B. negatively correlated. C. positively correlated. D. uncorrelated.