The premise of the quantity theory of money demand is
A) only gold and silver coins have value.
B) it is only the quantity of money, and not its quality, that counts.
C) the most obvious reason that households and businesses demand money is for use in making transactions.
D) the store of value function of money is more important than the medium of exchange function of money.
Correct Answer:
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Q7: A key problem with the basic quantity
Q8: If nominal money balances increase from $2
Q9: If on average a dollar is spent
Q10: If the quantity of money is $4
Q11: Since 1965, the price level in the
Q13: People use money primarily
A)to carry out transactions.
B)as
Q14: If the quantity of money is $1
Q15: Real money balances equal
A)MP.
B)M/P.
C)P/M.
D)nominal money balances.
Q16: If nominal money balances increase from $2
Q17: In order to buy in 2006 a
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