A student who cashes a check at the student union in order to go shopping illustrates an example of the Transaction demand for money. Speculative demand for money. Precautionary demand for money. Income effect. Substitution effect.

A student who cashes a check at the student union in order to go shopping illustrates an example of the Transaction demand for money. Speculative demand for money. Precautionary demand for money. Income effect. Substitution effect.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 1SQ

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Question

A student who cashes a check at the student union in order to go shopping illustrates an example of the
1. Transaction demand for money.
2. Speculative demand for money.
3. Precautionary demand for money.
4. Income effect.
5. Substitution effect.

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Norm and Debbie keep 1.5 month’s income in a NOW account for emergencies. This is an example of the _______________ demand for money. Transaction demand for money. Speculative demand for money. Precautionary demand for money. Income effect. Substitution effect.
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