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Monetarist and Keynesian Theories of Money Demand Differs in That

Question 42

Multiple Choice

Monetarist and Keynesian theories of money demand differs in that


A) Monetarists assumes that the demand for money is highly inelastic while Keynes assumes money demand is elastic.
B) Monetarists assumes that the money demand function is highly stable while Keynes assumes it is unstable.
C) Monetarists assumes that there is only a transactions demand for money while Keynes also considers the precautionary and speculative demands for money.
D) Monetarists assume that the proportion of income held in theform of money is constant while Keynes believes it varies.
E) all of the above.

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