Exam 19: The Demand for Money

Starting in 1974,the conventional M1 money demand function began to severely ________ the demand for money.Stephen Goldfeld labeled this phenomenon "the case of the missing ________."

If nominal GDP is $10 trillion,and the money supply is $2 trillion,velocity is

If interest rates do not affect the demand for money,then velocity is ________ likely to be ________.

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 view that velocity is constant in the short run transforms the equation of exchange into the quantity theory of money.According to the quantity theory of money,when the money supply doubles

The reason that economists are so interested in the stability of velocity is because if the demand for money is not stable,then steady growth of the money supply

Keynes's theory of the demand for money implies that velocity is

Comparing Tobin's model of the speculative demand for money with Keynesian speculative demand

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

The demand for money as a cushion against unexpected contingencies is called the