Over Time,the Wealth of Society Increases and Payments Technologies Get

question 89

Multiple Choice

Over time,the wealth of society increases and payments technologies get more efficient.What is the effect on money demand of these two changes?

• A)Money demand rises proportionately to the rise in wealth.
• B)Money demand rises, but less than proportionately to the rise in wealth.
• C)The overall effect is ambiguous.
• D)Money demand declines.

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Definitions:

Defining Characteristic

A feature that allows the clear identification or differentiation of an item or concept from others.

Associated Cost

Costs that are directly linked with a specific activity, process, or project.

Implicit Costs

The opportunity costs that arise from using assets, resources, or funds in a certain way rather than in the next best alternative.

Wheat Farm

A specialized agricultural operation focused on the cultivation and production of wheat.