The precautionary demand for money is:
(a) An active balance.
(b) Directly related to interest rates.
(c) Negatively related to income.
(d) An idle balance
Answer: (a) An active balance.
Economics
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A negative externality is an example of market failure. The root of the problem lies in the definition and enforcement of property rights. Explain
What will be an ideal response?
Economics
The length of money or commodity demand disturbances is important to the "policy activism" debate between non-activists and activists because
A) changing the money supply affects the economy with a lag. B) changes in private spending must be offset by policy debate. C) Both A and B are correct. D) None of the above is correct.
Economics