The ease and quickness with which an asset can be exchanged for goods, services, or other assets is its

Suppose that you are the central bank president in a developing country which is predominantly agricultural. During planting season, c the proportion of demand deposits held as cash doubles, but you wish to keep the money supply constant

You may decide to A) reduce e and/or buy securities and/or lower the rediscount rate. B) increase e and/or buy securities and/or lower the rediscount rate. C) reduce e and/or sell securities and/or raise the rediscount rate. D) increase e and/or sell securities and/or raise the rediscount rate.

The only difference between adaptive and rational expectations is that the theory of adaptive expectations assumes economic agents to be irrational

a. True b. False Indicate whether the statement is true or false