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 demand for money? (Check all that apply.)
A. Nominal interest rate.
B. Income.
C.
D. The risk of losing money.
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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?When the interest rate falls , other things remaining the same, what change occurs in the market for money? The opportunity cost of holding money _______ and _______. A. rises ; the demand for money decreases B. rises ; the quantity of money demanded decreases C. falls ; the quantity of money demanded increases D. falls ; the demand for money increases
- please dont make a humungous run on paragraph of an answer/explanation I need to know what I'm reading And answer as soon as possible1. 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?Quantity of Money Demanded Which line in the above graph would best reflect the slope of the transactions demand for money curve? Line 2 Line 4 Line 3 Line 1 Rate of Interest 2.
- 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.All 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.
- The main disadvantage of using money as a store of value is that a. money is not portable b. it requires a double coincidence of wants c. currency is intrinsically worthless d. the value of money actually falls when the prices of good and services riseIn the money market, the y axis of the coordinate plane is which variable below? a.Interest rate b.Wage c.Price d.Velocity of moneyThe opportunity cost of holding money A. increases when the interest rate decreases, so people desire to hold less of it. B. decreases when the interest rate decreases, so people desire to hold less of it. C. increases when the interest rate decreases, so people desire to hold more of it. D. decreases when the interest rate decreases, so people desire to hold more of it.
