As the number of transactions in the economy decreases,
a) the supply of money increases
b) the supply of money decreases
c) the demand for money increases
d) the demand for money decreases
Answer: d) the demand for money decreases
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Refer to Figure 21.1. The highest 20% of the population earn ________ of total income
A) 40% B) 44% C) 60% D) 80%
Explain why it is unwise to bid more than your valuation of the good in a sealed bid second-price auction
What will be an ideal response?
An efficient distribution of goods requires that
a. everyone gets an equal share of each good. b. marginal cost equal marginal utility for the last unit produced. c. each person derives the same total utility from the good. d. since tastes differ, every person pays a different price in accordance with different marginal utilities.
The nominal interest rate equals the:
What will be an ideal response?