Exam 19: The Demand for Money

arrow
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
  • Select Tags

Keynes argued that the transactions component of the demand for money was primarily determined by the level of people's ________,which he believed were proportional to ________.

(Multiple Choice)
4.7/5
(37)

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

(Multiple Choice)
4.9/5
(35)

According to the quantity theory of money demand,

(Multiple Choice)
4.9/5
(25)

If nominal GDP is $8 trillion,and the money supply is $2 trillion,velocity is

(Multiple Choice)
4.9/5
(32)

Cutting the money supply by one-third is predicted by the quantity theory of money to cause

(Multiple Choice)
4.7/5
(41)

The velocity of money is defined as

(Multiple Choice)
4.8/5
(41)

In Friedman's modern quantity theory,velocity depends upon the ratio of

(Multiple Choice)
4.8/5
(41)

Tobin's model of the speculative demand for money shows that people can reduce their ________ by ________ their asset holdings.

(Multiple Choice)
4.8/5
(31)

According to Milton Friedman,income rises relative to permanent income during a business cycle expansion,causing the demand for money relative to actual income to decrease,thereby causing velocity to ________.

(Multiple Choice)
4.7/5
(36)

In the Baumol-Tobin analysis of the demand for money,either an increase in ________ or an increase in ________ increases money demand.

(Multiple Choice)
4.9/5
(37)

Velocity,over the business cycle,tends to

(Multiple Choice)
4.9/5
(41)

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

(Multiple Choice)
4.9/5
(41)

The ________ sensitive is the demand for money to interest rates,the ________ unpredictable velocity will be,and the link between the money supply and aggregate spending will be less clear.

(Multiple Choice)
4.8/5
(32)

If the money supply is $600 and nominal income is $3,600,the velocity of money is

(Multiple Choice)
4.7/5
(35)

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

(Multiple Choice)
4.9/5
(45)

Tobin's model of the speculative demand for money shows that people hold money as a ________ as a way of reducing ________.

(Multiple Choice)
4.8/5
(34)

Irving Fisher's view that velocity is fairly constant in the short run transforms the equation of exchange into the

(Multiple Choice)
4.8/5
(40)

Evidence suggests that a liquidity trap is possible when ________.

(Multiple Choice)
4.7/5
(27)

Tobin's model of the speculative demand for money improves on Keynes's analysis by showing that

(Multiple Choice)
4.8/5
(41)

The classical economists' contention that prices double when the money supply doubles is predicated on the belief that in the short run velocity is ________ and real GDP is ________.

(Multiple Choice)
4.7/5
(37)
Showing 21 - 40 of 110
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)