During periods of hyperinflation,money does not hold its value long enough to make everyday market purchases; therefore,people hold as little as possible for as short a time as possible.This description implies that the
A) Transactions demand for money has decreased.
B) Precautionary demand for money has increased.
C) Speculative demand for money has decreased.
D) Portfolio demand for money has decreaseD.Holding money for everyday purchases refers to the transactions demand for money,which will be lower when money rapidly loses its value during periods of hyperinflation.
Correct Answer:
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Q1: Carolina holds $2,000 in her savings account
Q6: Mark holds $100 in cash in his
Q7: The choice to hold money in the
Q9: Money held to take advantage of future
Q10: The transactions demand for money is most
Q10: The cost of holding money in the
Q14: The speculative,transactions,and precautionary demands for money added
Q15: Money held for making everyday market purchases
Q18: Individuals hold precautionary balances in order to
A)Take
Q20: The use of money and credit controls
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