When the interest rate is considered higher than normal, the speculative demand for money ________, the transaction demand ________
A) increases; decreases
B) decreases; increases
C) remains the same; decreases
D) first increases then decreases; remains the same
B
Economics
You might also like to view...
In a simple economy without government or foreign trade, any income not consumed is called
A) net investment. B) depreciation. C) saving. D) investment.
Economics
Refer to the above figure. If the government imposes a price floor of $20
A) the quantity traded will be 150, and the price will be $20. B) the quantity traded will be 100, and the price will be $20. C) the quantity traded will be 200, and the price will be $20. D) none of the above.
Economics