A Major Contributing Factor to the Instability of Money Demand

question 85

Multiple Choice

A major contributing factor to the instability of money demand over the past 25 years is the:

• A) introduction of financial instruments that pay higher returns than money but can be used as a means of payment.
• B) Fed has changed the way the money aggregates are defined.
• C) failure of many savings and loans.
• D) introduction of credit cards.

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Definitions:

Companionate Love

A form of love characterized by deep affection, friendship, and emotional intimacy, without the obsession of romantic love.

Positive Support

Encouragement or assistance provided in a constructive and uplifting manner to promote positive outcomes.

Mere Exposure Effect

A psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them, influencing attitudes and preferences.

Physical Attractiveness

The degree to which a person’s physical features are considered aesthetically pleasing or beautiful by others.