Keynesians identify three principal motives for demanding money. They are the: a. transactions demand, precautionary demand,...
Keynesians identify three principal motives for demanding money. They are the:
| a. |
transactions demand, precautionary demand, and convertibility motive. |
|
| b. |
transactions demand, precautionary demand, and liquidity motive. |
|
| c. |
transactions demand, speculative demand, and volatility motive. |
|
| d. |
transactions demand, speculative demand, and precautionary demand. |
Homework Answers
Answer
Option d
transactions demand, speculative demand, and precautionary demand
the demand for money is for transactions means for daily use of money livelihood
speculative demand is a demand for assets and interest on the money
precautionary demand is the demand for uncertain events
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Keynesians identify three principal motives for demanding money.
They are the:
a.
transactions demand, precautionary demand,...
5. The motives for holding money Aa Aa Match the correct motive for holding money to...
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There are three motives of demand for money. Explain each of them.
There are three motives of demand for money. Explain each of them.
Which of the following statements is/are TRUE in respect of the demand for money? 1. The...
Which of the following statements is/are TRUE in respect of the demand for money? 1. The speculative demand for money is a function of the interest rate. 2. The transactions demand for money is a function of the interest rate. 3. The precautionary demand for money is a function of national income. a) Statement 1 only. b) Statement 2 only. c) Statements 3 only. d) Statements 1 and 2 only. e) Statements 1 and 3 only.
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1. The money demand equation used by the Keynesians has as its premise that as interest...
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50. Ceteris paribus, the total demand for money curve will increase (shift rightward): A. if interest...
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Agritaban p us equity o 10 A Bank Make Money ily CAJ Pying higher interest rates...
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28.The speculative demand for money is the stock of money that people hold to: a.pay their...
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5. The motives for holding money Aa Aa Match the correct motive for holding money to the following definitions. Motive Definition The stock of money people hold to pay everyday predictable expenses Transactions demand for money The stock of money people hold to take advantage of future changes in Speculative demand for money the price of non-money financial assets The stock of money people hold to pay unpredictable expenses Precautionary demand for moey Identify the motive for holding money in...
decided with an adel 14. The endogenous variable in the liquidity preference model is a money supply bmoney demand. price level d. velocity of money. • e interest rate.. 15. In developing countries, financial markets are not developed as the developed countries. Honce most businesses depend on funding from banks. So developing countries depend mostly on .a. indirect finance. b direct finance. c. non-intermediary finance d. government finance. Figure 3-2 QoFM 16. The graph above shows the liquidity preference model....
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