The quantity of money demanded to satisfy transactions needs:
a. is intended for unexpected expenditures.
b. increases with the level of real GDP.
c. decreases with the level of real GDP.
d. is unrelated to either national income or the interest rate.
e. varies inversely with the liquidity demand for money.
b
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Along a curved line, the slope at the maximum
A) is greater than zero. B) is zero. C) is less than zero. D) may be greater than, less than, or equal to zero.
The slope of the consumption function can be determined by dividing the change in
a. real consumption spending by the change in real disposable income b. nominal spending by the change in nominal disposable income c. real disposable income by the change in real consumption spending d. nominal disposable income by the change in nominal consumption spending e. total consumption spending by the change in autonomous consumption spending