Monetarist and Keynesian theories of money demand differs in that
a. Monetarists assumes that the demand for money is highly inelastic while Keynes assumes money demand is elastic.
b. Monetarists assumes that the money demand function is highly stable while Keynes assumes it is unstable.
c. Monetarists assumes that there is only a transactions demand for money while Keynes also considers the precautionary and speculative demands for money.
d. Monetarists assume that the proportion of income held in theform of money is constant while Keynes believes it varies.
e. all of the above.
E
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A seasonal binary (or indicator or dummy) variable, in the case of monthly data,
A) is a binary variable that take on the value of 1 for a given month and is 0 otherwise. B) is a variable that has values of 1 to 12 in a given year. C) is a variable that contains 1s during a given year and is 0 otherwise. D) does not exist, since a month is not a season.
Refer to the above figure. Which of the following statements is true about the demand curves for an individual firm in a perfectly competitive industry and a monopoly?
A) Panel A is the demand curve for a perfectly competitive firm and panel B is the demand curve for a monopoly. B) Panel C is the demand curve for a perfectly competitive firm and panel A is the demand curve for a monopoly. C) Panel C is the demand curve for a perfectly competitive firm and panel B is the demand curve for a monopoly. D) Panel B is the demand curve for a perfectly competitive firm and panel A is the demand curve for a monopoly.