The Precautionary Demand for Money

question 63

Multiple Choice

The precautionary demand for money:

• A) varies inversely with the income level.
• B) varies inversely with the price level.
• C) is used as an insurance agent against unexpected needs.
• D) states that nominal income must exceed real income.
• E) is a classical concept in monetary theory.

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Definitions:

Kamakura Sculptor

Identifies a sculptor or the style of sculpture originating from the Kamakura period in Japan, spanning from 1185 to 1333, known for its realistic and expressive Buddhist statues.

Buddhist Priest Kuya

A prominent Japanese Buddhist monk known for his missionary work and public preaching, often depicted in sculptures showing him in a dynamic posture with six miniature Amida Buddhas emanating from his mouth.

Wood

A natural composite material from trees used in construction, tools, and art due to its strength, pliability, and aesthetic qualities.

Pagoda

An East Asian tower, usually associated with a Buddhist temple, having a multiplicity of winged eaves; thought to be derived from the Indian stupa.