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.
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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?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…
- 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 increases6) State how each of the following would affect the quantity of money demanded. Does the change cause a movement along the money demand curve or a shift of the money demand curve (state the direction of the shift or movement)? a) Interest rates rises from 5% to 8%. b) The consumer price index (CPI) rises in the economy.2. What is normal goods? What is ordinary goods? Please indicate whether normal money must be ordinary money.
- 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?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.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.
