According to the "square-root rule" of the transactions demand for money, the demand for money would
A) vary inversely with the interest rate.
B) be zero if there were no costs to switching between money and interest-earning assets.
C) vary less than proportionately with income.
D) All of the above are correct.
D
Economics
You might also like to view...
What does the marginal revenue equal when a monopoly's total revenue is maximized? What is the elasticity of demand when the total revenue is maximized?
What will be an ideal response?
Economics
The difference between producer surplus and profit is always the associated with
A) opportunity costs. B) total costs. C) variable costs. D) fixed costs.
Economics