The given data suggest that the amount of money demanded for transactions:
Answer the question on the basis of the following table in which columns (1) and (2) indicate the transactions demand (D t ) for money and columns (1) and (3) show the asset demand (D a ) for money:
A. varies directly with the interest rate.
B. varies inversely with the interest rate.
C. varies inversely with nominal GDP.
D. is independent of the interest rate.
D. is independent of the interest rate.
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The Economic Act of 1946 allowed the federal government to use discretionary fiscal policy to pursue economic prosperity
Indicate whether the statement is true or false
When economists describe the theory of consumer choice, they
a. portray people as simple and methodical with perfectly predictable patterns of behavior. b. assert that consumer's decisions are based on which goods and services give them the greatest utility within their limited incomes. c. point out that consumers rarely consider utility in their purchase decisions; they look at other factors like convenience, peer behavior, and price. d. assert that the retail price is the only variable consumers really consider in making their purchasing decisions. e. admit that consumer behavior is random and there is no credible economic theory to explain the phenomenon.