The Baumol-Tobin analysis suggests that
A) velocity is relatively constant.
B) the transactions component of the demand for money is negatively related to the level of interest rates.
C) the speculative motive is nonexistent.
D) velocity is unrelated to the transactions motive.
B
Economics
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In the figure above, suppose a subsidy is provided to private colleges. What amount of subsidy will ensure the efficient number of students?
A) $10,000 B) $25,000 C) $15,000 D) $5,000 E) $20,000
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With the understanding that people respond to incentives, outline the possible outcome for teachers if the K-12 school year is extended to 11 months per year instead of the existing 9 months per year
Economics