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In Each of the Following Cases,one Factor Affecting Money Demand

question 21

Essay

In each of the following cases,one factor affecting money demand changes.You must tell how the second factor would have to change if real money demand were to remain unchanged overall.
a.Expected inflation rises;real income ________.
b.Nominal interest rate on money rises;wealth ________.
c.Risk on stocks and bonds rises;efficiency of payments technology ________.
d.Risk on money rises;real interest rate ________.
e.Liquidity of nonmonetary assets rises;expected inflation ________.
f.Wealth rises;risk on nonmonetary assets ________.


Definitions:

Fiduciary Duty

An obligation to act in the best interest of another party, such as the duty a trustee has to the beneficiaries of a trust.

Secretary Of State

A high-ranking official responsible for foreign affairs and administrative tasks within a government.

Treasurer

An official or executive in an organization responsible for managing and overseeing financial affairs and funds.

Chief Information Officer

An executive role responsible for managing and implementing information and computer technologies in an organization.

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