QUESTION 33 Which of the following is a function of money? O the interest rate O speculative demand O as a medium of exchange O inflation
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Step 1: The interest rate is not a function of money, but rather a variable that is influenced by the supply and demand for money in the economy. Show more…
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Haricharan G.
6. The demand for money arises out of the need to hold money as a medium of exchange. This demand for money is a function of Precautionary; interest rates Transactions; national income Speculative; interest rates Precautionary; national income 7 . As the interest rate increases, the opportunity cost of holding money and individuals choose to hold_ money: increases, more decreases, decreases, more increases, decreases, less decreases, increases, more
Jennifer S.
Which of the following statements is true? Select one: a. The speculative demand for money at possible interest rates gives the demand for money curve its upward slope. b. There is an inverse relationship between the quantity of money demanded and the interest rate. c. According to the quantity theory of money, any change in the money supply will have no effect on the price level. d. The transactions demand for money is used as an insurance agent against unexpected needs.
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