When the value of money is on the vertical axis, an increase in the price level shifts money demand to the right

Friedman measured "permanent" income by assuming that people adjusted their consumption on the basis of

A) an "error learning" process with respect to their expected income. B) an adaptive expectation formation of their expected income. C) transitory income and the level of income expected over a period of years in the future. D) All of the above.

Another name for the expected value of an investment would be the:

A. mean value. B. risk-free value. C. certain value. D. upper-end value.