The transactions demand for money
A. varies inversely with nominal Gross Domestic Product (GDP).
B. varies directly with nominal Gross Domestic Product (GDP).
C. varies negatively with nominal Gross Domestic Product (GDP).
D. is unrelated to nominal Gross Domestic Product (GDP).
Answer: B
Economics
You might also like to view...
If households save $0.20 of each additional dollar of increased income and spend the rest, the expenditure multiplier will be
A) 1.25. B) 2. C) 5. D) 8.
Economics
GDP tends to overstate economic well-being because it takes into account:
A. Improvements in product quality over time B. Expenditures undertaken to correct pollution C. Illegal activities of individuals and businesses D. Nonmarket activities, such as the productive work of homemakers
Economics