Keynes Argued That the Precautionary Component of the Demand for Money

question 104

Multiple Choice

Keynes argued that the precautionary component of the demand for money was primarily determined by the level of people's ________,which he believed were proportional to ________.

• A)incomes;wealth
• B)incomes;age
• C)transactions;income
• D)transactions;age

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Definitions:

Marginal Revenue

The incremental revenue acquired by a business upon selling one more unit of a good or service.

Average Variable Cost

The total variable costs divided by the quantity of output produced, indicating the average amount spent on variable costs per unit of output.

Variable Costs

Expenses that fluctuate in direct proportion to changes in production volume or activity levels, including costs like raw materials and direct labor.

Cost Curves

Graphical representations that show how the cost of producing goods changes with changes in the quantity of production.