What happens to real money demand (rise, fall, no change) due to a change in each of the following factors?(a)A tax on stock market transactions is introduced.(b)Computerized bond trading reduces transactions costs.(c)People's average level of wealth rises.(d)The threat of a recession increases the riskiness of stocks and bonds.(e)The interest rate paid on checking account balances declines.(f)The price level falls in a one-time jump.
What will be an ideal response?
| (a) | Rises |
| (b) | Falls |
| (c) | Rises |
| (d) | Rises |
| (e) | Falls |
| (f) | Is unchanged |
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a. True b. False
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