The Demand for Money Is Based Primarily on Money's Role

question 34

Multiple Choice

The demand for money is based primarily on money's role as a(n) :

• A)measure of wealth.
• B)medium of exchange.
• C)standard of economic well-being.
• D)interest-bearing asset.
• E)non-interest-bearing asset.

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Definitions:

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable on another while holding all other relevant factors constant.

Total Income

The sum of all earnings obtained by an individual or entity, including wages, salaries, benefits, and income from investments, before any deductions.

Complementary

Goods or services that are used together, where the consumption or use of one increases the value or demand for the other.

Fixed Proportions

A production condition where inputs are used in constant ratios, without substitution between them, over a range of output levels.