The quantity of money demanded to satisfy transactions needs:
a. is intended for unexpected expenditures.
b. increases with the level of real GDP.
c. decreases with the level of real GDP.
d. is unrelated to either national income or the interest rate.
e. varies inversely with the liquidity demand for money.
b
You might also like to view...
Which of the following is true for a firm with a downward-sloping demand curve for its product?
A) Price equals average revenue but is greater than marginal revenue. B) Price equals average revenue but is less than marginal revenue. C) Price, average revenue, and marginal revenue are all different. D) Price, average revenue, and marginal revenue are all equal.
Between the years of 2001 and 2003, what happened to the structural deficit?
A. It declined rapidly. B. It fell steadily. C. It increased steadily. D. It remained fairly constant.
What would happen to the optimal amount of pollution if studies have found dangerous effects of SO2 cause cancer and the government subsidizes companies to use different pollution cleaning techniques?
A. Stay the same B. Increase C. Decrease D. Uncertain
Consider the production possibilities frontier in the figure shown. The opportunity cost of cars when moving from point B to point C:
A. there is no opportunity cost when we move from B to C. B. is greater than the opportunity cost of cars when moving between any other two points. C. is greater than the opportunity cost of cars when moving from point A to point B. D. is less than the opportunity cost of cars when moving from point A to point B.