The quantity of money demanded to satisfy transactions needs
a. is intended for unexpected expenditures
b. increases with the level of nominal GDP
c. decreases with the level of nominal GDP
d. is unrelated to either national income or the interest rate
e. varies inversely with the liquidity demand for money.
B
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For state residents, interest on most bonds issued by their state government is
A) exempt from state and federal income taxes. B) exempt from state, but not from federal, income taxes. C) exempt from federal, but not from state, income taxes. D) subject to both state and federal income taxes.
The central idea distinguishing the "efficiency wage model" is that the wage paid by Firm A relative to the wages at other firms helps determine
A) Firm A's demand for labor. B) the amount of labor Firm A can hire. C) the productivity of Firm A's workers. D) Firm A's markup fraction.