Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 

Which of the following is NOT a motive for holding money?

a) the transaction motive b) the speculative motive c) the asset motive d) all of the above are motives for holding money

In a recession, the trade balance often improves because

a. service exports exceed manufactured good exports b. banks sell depressed assets c. fewer households can afford luxury imports d. direct investment abroad declines e. the capital account exceeds the current account