In the classical model, people hold money because
a. it is a way to save.
b. it makes trade easier.
c. it is the way to measure the value of goods and services.
d. it is an asset.
B
Economics
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"If it were not for the law of diminishing marginal returns, the world's wheat could be grown in a flower pot." Explain
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Which of the following is not an example of the adverse selection problem?
A. Buyers in a market for used cars must choose from an undesirable selection of used cars. B. An insurance company must choose one price for its coverage for both high-cost and low-cost people. C. Commercial banks would rather use credit rationing than raising interest rates in the presence of excess demand for loans. D. An insured motorist drives more recklessly.
Economics