Keynes Argued That the Transactions Component of the Demand for Money

question 100

Multiple Choice

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 ________.

• A)transactions;income
• B)transactions;age
• C)incomes;wealth
• D)incomes;age

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Definitions:

Cognitive Psychology

The branch of psychology that studies mental processes including perception, thinking, memory, and problem-solving.

Tolman

A psychologist known for his work on cognitive maps in rats and the concept of latent learning.

Model

An abstract representation or simulation of a real system, process, or concept used to understand, predict, or control its behavior.

Contiguity

The principle that for learning to take place, the stimulus and response should occur close together in time.