An asset becomes more liquid and hence more money-like
A) as its value relative to other goods approaches zero.
B) as its value relative to other goods becomes more uncertain and unpredictable.
C) as the cost of exchanging it for other goods approaches zero.
D) when it is demanded for its own intrinsic value.
C
Economics
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The money, time, and opportunity used to change prices to keep pace with inflation are called:
A. menu costs. B. shoe-leather costs. C. tax distortions. D. the velocity of inflation.
Economics
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Economics