Refer to the information below.The transactions demand for money in this market would graph as a:
A)vertical line.
B)horizontal line.
C)line sloping downward and to the right.
D)line sloping upward and to the right.

Question

Refer to the information below.The transactions demand for money in this market would graph as a: 
A)vertical line. 
B)horizontal line. 
C)line sloping downward and to the right. 
D)line sloping upward and to the right.

Quizplus · Accepted Answer

The transactions demand for money is the amount of money people hold for making day-to-day transactions such as buying groceries, paying bills, etc. It does not depend on the interest rate or the level of income. Therefore, the transactions demand for money would be constant, which can be represented by a vertical line.

Refer to the Information Below