The phrase "capital formation" is synonymous with

Traditional Keynesians would argue that fluctuations in aggregate demand are closely tied to fluctuations in investment

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

The quantity of money demanded is the

A) average daily volume of bank account withdrawals. B) amount that people and businesses choose to hold. C) fraction of cash holdings in an average investment portfolio. D) income and volume of profits that people and businesses would like to receive. E) sum of checkable and savings deposits at banks.