Keeping an extra $200 in your checking account to pay for possible car repairs illustrates the
A) speculative demand for money.
B) transfer demand for money.
C) precautionary demand for money.
D) transactions demand for money.
Ans: C) precautionary demand for money.
Economics
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Suppose that C = Ca + 0.6y and a shock decreases Ca by $50 billion. Assuming there is no government involvement, by how much will equilibrium GDP decrease?
What will be an ideal response?
Economics
If net exports increases, but neither government expenditure nor net taxes change, saving must increase
Indicate whether the statement is true or false
Economics