Suppose a new law imposes a tax on all trades of bonds and stock. What is the likely effect on money demand?
A) Money demand declines first, then rises when inflation increases.
B) Money demand rises.
C) The overall effect is ambiguous.
D) Money demand declines.
B
Economics
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Which of the following best describes real GDP?
A) Real GDP = Potential GDP - Nominal GDP B) Real GDP = Potential GDP + Deviation from potential GDP C) Real GDP = Deviation from potential GDP / Potential GDP D) Real GDP = Nominal GDP / Potential GDP
Economics
Which of the following represent the Federal Reserve's most important responsibilities?
a. Supervise and regulate banks. b. Issuing paper currency. c. Printing paper currency. d. Both (a) and (b) e. Deciding the maximum rate banks can charge for loans.
Economics