When people hold a specific quantity of money during a specific time period because they expect to use the money to buy a specific value (price times quantity) of goods, we refer to that money holding as satisfying their

If the economy is inflationary, the Fed would most likely:

a. increase bank reserves by raising the discount rate. b. increase bank reserves by buying government securities c. decrease bank reserves by lowering the discount rate. d. decrease bank reserves by selling government securities. e. decrease bank reserves by lowering the legal reserve requirement.

Some people make purchases without complete information because:

A. they are irrational. B. the opportunity cost of getting more information outweighs the benefit of having more information. C. the benefit of having more information outweighs the opportunity cost of acquiring it. D. No one makes purchases without complete information.