Exam 21: Quantity Theory, inflation, and the Demand for Money

For the classical economists,the quantity theory of money provided an explanation of movements in the price level.Movements in the price level result ________.

Explain the Keynesian theory of money demand.What motives did Keynes think determined money demand? What are the two reasons why Keynes thought velocity could not be treated as a constant?

The government can ________ by ________.

Velocity is defined as ________.

Keynes's liquidity preference theory indicates that the demand for money is ________.

Because the quantity theory of money tells us how much money is held for a given amount of aggregate income,it is also a theory of ________.

The Zimbabwean hyperinflation was caused by ________.

The Baumol-Tobin analysis suggests that an increase in the brokerage fee for buying and selling bonds will cause the demand for money to ________ and the demand for bonds to ________.

The Baumol-Tobin analysis suggests that a decrease in the brokerage fee for buying and selling bonds will cause the demand for money to ________ and the demand for bonds to ________.

Financing a debt through the direct-issue of currency is called ________.

The speculative motive for holding money is closely tied to what function of money?

In Irving Fisher's quantity theory of money,velocity was determined by ________.

The Keynesian theory of money demand predicts that people will increase their money holdings if they believe that ________.

The average number of times that a dollar is spent in buying the total amount of final goods and services produced during a given time period is known as ________.

If the money supply is $20 trillion and velocity is 2,then nominal GDP is ________.

Keynes's liquidity preference theory indicates that the demand for money is ________ related to ________.

One part of monetizing the debt is for the central bank to ________.

Explain the precautionary motive for holding money in Keynes's liquidity preference theory

In the liquidity trap,the money demand curve ________.

According to the quantity theory of money demand,________.