Demand For Money

Demand For Money

University

12 Qs

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Demand For Money

Demand For Money

Assessment

Quiz

Other

University

Practice Problem

Hard

Created by

esha jhaveri

Used 15+ times

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12 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Keynes’s hypothesized that the transactions component of money demand was primarily determined by the level of

interest rates

velocity

income

stock market prices

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Keynes argued that the transactions component of the demand for money was primarily determined by the level of people’s _____, which he believed were proportional to _____.

transactions; income

transactions; age

incomes; wealth

incomes; age

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Keynes’s hypothesized that the precautionary component of money demand was primarily determined by the level of

interest rates

velocity

income

stock market prices

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Keynes argued that the precautionary component of the demand for money was primarily determined by the level of people’s _____, which he believed were proportional to _____.

incomes; wealth

incomes; age

transactions; income

transactions; age

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The demand for money as a cushion against unexpected contingencies is called the

transactions motive.

precautionary motive.

insurance motive.

speculative motive.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Keynes’s hypothesized that the speculative component of money demand was primarily determined by the level of

interest rates

velocity

income

stock market prices

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The speculative motive for holding money is closely tied to what function of money?

Store of wealth

Unit of account

Medium of exchange

None of the above

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