There are several motives for holding assets in the form of money. What are they? Provide an example of each
There are three main reasons for holding money:
a . transaction purposes for facilitating exchange - groceries, utilities, clothing
b. precautionary purposes for unexpected expenses - medical emergencies; home repairs; auto repairs
c. asset purposes for easy conversion into goods and services (liquidity) - money market account balances to be used later for long-term investments
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Refer to Figure 1A.2. The slope of the curve
A) is positive. B) is negative. C) is zero. D) changes along the curve.
What is/are the central argument(s) against tariffs?
(a) They redistribute income away from consumers who are paying higher prices because of the tariffs. These rents are given to the individual industries that are protected by the tariffs and are operating inefficiently. (b) A laissez-faire economy is the American way. (c) They protect the wealthy. (d) They benefit only fast-growing industries.