One important function of money is to facilitate exchange. Economic agents hold money because?
December 20th, 2009 | by mon-ex |
Ljygfjhgj K asked:
One important function of money is to facilitate exchange. Economic agents hold money because money is routinely used as a medium of exchange. When money is held for this purpose, we describe this motive as the transaction motive or the transaction demand for money. According to the Keynesian liquidity preference theory, when the transactions demand for money increases,
One important function of money is to facilitate exchange. Economic agents hold money because money is routinely used as a medium of exchange. When money is held for this purpose, we describe this motive as the transaction motive or the transaction demand for money. According to the Keynesian liquidity preference theory, when the transactions demand for money increases,
A. the interest rate falls
B. there is a rightward shift in the demand curve for money.
C. there is movement up and to the left along the demand curve for money
D. there is movement down and to the right along the demand curve for money.
E. there is a leftward shift in the demand curve for money.
MALIK
One Response to “One important function of money is to facilitate exchange. Economic agents hold money because?”
By chris n on Dec 23, 2009 | Reply
For money.
The demand curve for money.