The Quantity of Money Demanded to Satisfy Transactions Needs

question 122

Multiple Choice

The quantity of money demanded to satisfy transactions needs:

• A) is intended for unexpected expenditures.
• B) increases with the level of real GDP.
• C) decreases with the level of real GDP.
• D) is unrelated to either national income or the interest rate.
• E) varies inversely with the liquidity demand for money.

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Definitions:

Technological Base

Refers to the foundation of technology, including the knowledge, tools, and processes that support the economic and industrial development of a country or region.

Foreign Aid

Financial or material assistance provided by one country to another, often for developmental purposes.

Private Channels

Means of communication or distribution that are owned and operated by non-governmental entities.

International Monetary Fund

An international organization created for the purpose of fostering global monetary cooperation, securing financial stability, facilitating international trade, promoting high employment, and sustainable economic growth, and reducing poverty.