Since the elimination of interest rate ceilings on deposits,the implicit interest rate on money more closely approaches bond interest rates.This suggests that changes in interest rates will
A) have a larger impact on money demand.
B) have a smaller impact on money demand.
C) no longer affect the speculative demand for money.
D) no longer affect the transactions demand for money.
Correct Answer:
Verified
Q64: Explain the Keynesian theory of money demand.What
Q67: Keynes's model of the demand for money
Q72: Friedman's argument that competition among banks will
Q72: The Keynesian demand for real balances can
Q76: Keynes's liquidity preference theory indicates that the
Q86: Tobin's model of the speculative demand for
Q88: The Baumol-Tobin analysis suggests that a decrease
Q94: In the Baumol-Tobin analysis of transactions demand,scale
Q110: Tobin's model of the speculative demand for
Q111: What factors determine the demand for money
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents