Empirical Studies Done on Money Demand Established That

question 40

Multiple Choice

Empirical studies done on money demand established that

• A)the income elasticity of money demand (M1)is greater than 1
• B)the income elasticity of money demand (M1) is equal to 1
• C)the income elasticity of money demand (M1) is larger in the long run than in the short run
• D)the interest elasticity of money demand (M1)is close to -1
• E)none of the above

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Definitions:

Intuitive

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A cognitive process that involves perceiving or taking in information through the senses.

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A subjective, emotional state or reaction that something is experienced through the senses or emotions.