Keynes called the money people hold in order to pay unforeseen or unexpected expenses the:
A. transactions demand for holding money.
B. precautionary demand for holding money.
C. speculative demand for holding money.
D. store of value demand for holding money.
Answer: B
Economics
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The table above gives data for the nation of Pearl, a small island in the South Pacific. If aggregate demand increases so that the quantity of real GDP demanded is $6 billion more at each price level, the new equilibrium real GDP is ________, and the nation is now experiencing a(n) ________.
A) $22 billion; inflationary gap B) $22 billion; recessionary gap C) $28 billion; inflationary gap D) $28 billion; recessionary gap E) $25 billion; equilibrium
Economics
As a market-based society, non-profit firms are illegal in the U.S
Indicate whether the statement is true or false
Economics