Because Treasury bills pay a higher return than money and have no risk
A) the transactions demand for money may be zero.
B) the precautionary demand for money may be zero.
C) the speculative demand for money may be zero.
D) all three of the above motives for holding money will be zero.
C
Economics
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Which of the following is NOT a problem in following an activist policy?
A) ineffectiveness in fiscal policy B) lags in the effects of policies C) multiplier uncertainty D) forecasting errors
Economics
Which of these would be a fiscal policy the government might want to use if the economy is operating at too high a level of output?
A. Increasing income tax rates B. Increasing the money supply and lowering interest rates C. Increasing government purchases of goods and services
Economics