What is the motivation for individuals to hold money?
A) to facilitate transactions B) to reduce risk
C) to have liquidity D) all of the above
D
You might also like to view...
Monetary policy will be
a. less effective the higher the interest elasticity of investment, and thus the steeper the IS schedule. b. more effective the higher the interest elasticity of investment, and thus the flatter the IS schedule. c. equally effective regardless of whether or not the interest elasticity of investment is higher or lower, or the IS curve is flatter or steeper. d. more effective with a vertical IS curve.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower