The transactions demand for money is least likely to be a function of the
A. price level.
B. frequency of wage and salary payments.
C. interest rate.
D. level of national income.
Answer: C
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Refer to Figure 5-1. At the efficient equilibrium,
A) economic surplus is minimized. B) economic surplus is maximized. C) economic surplus is zero. D) economic surplus is negative.
According to Hughes and Cain (2011), all of the following have been primary motives throughout American history for government regulation except
(a) the existence of monopoly power (b) quality control of products and services (c) funding of government activities through taxation (d) raising wages and improving working conditions
A lump-sum tax
a. is most frequently used to tax real property. b. does not distort incentives. c. distorts incentives more than any other type of tax. d. is the most fair tax.
(Consider This) The Fed's ability to alter the level of reserves in the banking system is the main idea of the:
A. sponge analogy. B. squeegee analogy. C. pushing-on-a-string analogy. D. hose analogy.