Because Keynes assumed that the expected return on money was zero, he argued that people would
A) never hold money.
B) never hold money as a store of wealth.
C) hold money as a store of wealth when the expected return on bonds was negative.
D) hold money as a store of wealth only when forced to by government policy.
C
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During times of financial crisis, mark-to-market accounting
A) requires that a financial firms' assets be marked down in value which can worsen the lending crisis. B) leads to an increase in the financial firms' balance sheets since they can now get assets at bargain prices. C) leads to an increase in financial firms' lending. D) results in financial firms' assets increasing in value.
The quantity equation makes the demand for money depend on
A) the unemployment rate and the level of interest rates. B) the inflation rate and the unemployment rate. C) interest rates and the unemployment rate. D) None of these.