Based on these motives, what variables did he think determined the demand for money? (Check all that apply.) A. Nominal interest rate. B. Income. C. Price level. D. The risk of losing money.
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Based on these motives, what variables did he think determined the
A. Nominal interest rate.
B. Income.
C.
D. The risk of losing money.
Step by step
Solved in 2 steps
- The Bring it Home Feature discusses the use of cowrie shells as money. Although we no longer use cowrie shells as money, do you think other forms of commodity monies are possible? What role might technology play in our definition of money?How does the existence of money simplify the process of buying and selling?Please kindly assist with the following. Which one of the following statements is NOT true? (a) Money is the most liquid asset.(b) Money is a store of value.(c) Money is a unit of account.(d) Money is another term for income.Which of the following will cause the demand curve for money to shift to the right?(a) An increase in real Gross Domestic Product (GDP).(b) A decrease in the repo rate.(c) An increase in the quantity of money available.(d) A decrease in the quantity of money available. A budget deficit occurs when:(a) there is an increase in taxation.(b) government spends less than is generated by taxation.(c) government spending is very high.(d) Government spends more than is generated by taxation. An example of an indirect tax is: (a) income tax. (b) secondary tax on dividends.(c) company tax.(d) value added tax.Which one of the following statements is INCORRECT? (2)(a) Provincial government forms…
- Which statement is not correct? A. Money is a legal tender since the law requires a lender to accept money in the repayment of debts. B. Money as a store of value can be held and exchanged later for goods and services. C. In its role as a medium of exchange, money makes exchanges easier by reducing transactions costs. D. The demand for money represents the idea that there is a positive relationship between the interest rate and the quantity of money demanded. E. none of the above1. The Central Bank of Indonesia sees the potential of the latest credit card technology to facilitate transactions in the community. Then, the central bank change their regulations to decide to expand the availability of credit cards so that people have to hold less cash. a) How does this event affect the demand for money?Which of the following statements represent a use of money that is not consistent with its definition? "I got some money at the ATM with my debit card," "I just used my credit card as money to buy a new television." "I wrote a check on my deposit account to pay for dental services." "I will accept either currency or gold as money for the purchase of my house."
- When the demand for money is greater than the supply of money: A) people offering to sell nonmonetary financial assets must increase the interest rate these assets pay in order to sell them. B) more people will hold money. C) the opportunity cost of holding money will fall. D) interest rates will fall.Question 12 If there is excess demand for money, then people will a. deposit more money into interest-bearing accounts, and the interest rate will fall. b. deposit more money into interest-bearing accounts, and the interest rate will rise. c. withdraw money from interest-bearing accounts, and the interest rate will fall. d. withdraw money from interest-bearing accounts, and the interest rate will rise.The quantity of money demanded depends upon the: a. Consumers' emergencies b. Outstanding bonds c. Investment in Government papers d. Interest rate
- 2All else equal, suppose the interest rate rise from 3% to 3.5%. What will happen in the supply of money? a. Shifts to the right. b. Shifts to the left. c. An upward movement along the supply curve. d. An downward movement along the supply curve. e. The supply will remain unchanged.Which of the following statements about money that is correct? A. Inflation brings a rising value of money. B. A work of art is an example of money because it can act as a store of value. C. Money is a completely stable store of value. D. Without a medium of exchange, goods and services must be exchanged directly for other goods and services.
