The money demand function implies that money demand is
A) positively related to interest rates.
B) negatively related to bond prices.
C) negatively related to interest rates.
D) negatively related to transactions in the economy.
C
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The two most important factors contributing to increased productivity in industrialized countries in the twentieth century were:
A. higher relative prices and technological progress. B. higher relative prices and a larger labor supply. C. technological progress and increases in the labor supply. D. technological progress and increases in the capital stock.
One topic that microeconomics explores is how prices are determined in individual markets, while macroeconomics is concerned with issues such as the economy's overall rate of inflation, economic growth and unemployment
a. True b. False Indicate whether the statement is true or false
In competitive industries, firms that innovate can expect to make no profit in the short run
Indicate whether the statement is true or false
Real money balances
A. refer to the amounts of nominal money that individuals hold. B. are computed by deflating nominal money assets by the average price level. C. refer to the amounts of American money that an individual holds relative to gold or foreign currencies. D. are measured by currency holdings rather than holdings in checking accounts.