George makes $250 a week working as a student aid. When he cashes his check he takes $100 to the cashiers office to pay part of his tuition. $25 goes to paying off his books, $75 goes for entertainment and $50 he keeps for unexpected expenditures
Which of the following statements is TRUE?
A) The transactions demand for money is $125, the precautionary demand is $75 and the asset demand is $50.
B) The transactions demand for money is $0, the precautionary demand is $250 and the asset demand is $0.
C) The transactions demand for money is $200, the precautionary demand is $50 and the asset demand is $0.
D) The transactions demand for money is $250, the precautionary demand is $0 and the asset demand is $0.
C
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Because oil price increases reduce the consumption of oil, this discourages the development of oil substitutes
Indicate whether the statement is true or false
An exogenous increase in the country's trade balance shifts the
a. IS schedule to the left. b. IS schedule to the right. c. LM schedule to the left. d. LM schedule to the right.