The transactions demand for money exists because households
A) are insensitive to interest rate changes.
B) must save for unexpected emergencies.
C) do not like the fact that money is a liquid asset.
D) do not receive their incomes at the same time they wish to make purchases.
Correct Answer:
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Q1: The precautionary demand for holding money arises
Q2: What are the two features of money
Q3: When interest rates rise, the transactions demand
Q4: A person puts a $10 bill in
Q6: Which of the following is a factor
Q7: The demand for money to cover unexpected
Q8: Precautionary demand for money will fall when
A)
Q9: The transactions demand for money
A) varies negatively
Q10: The transactions demand for money
A) varies inversely
Q11: According to the text, the main reason
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