Multiple Choice
In the Baumol-Tobin analysis of transactions demand,scale economies imply that an increase in real income increases the quantity of money demanded ________,while an increase in the price level increases the quantity of money demanded ________.
A) proportionately;less than proportionately
B) more than proportionately;proportionately
C) less than proportionately;proportionately
D) proportionately;more than proportionately
Correct Answer:
Verified
Correct Answer:
Verified
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