In the Baumol-Tobin Analysis of Transactions Demand,scale Economies Imply That

question 109

Multiple Choice

In the Baumol-Tobin analysis of transactions demand,scale economies imply that an increase in real income increases the quantity of money demanded ________,while an increase in the price level increases the quantity of money demanded ________.

• A)proportionately;less than proportionately
• B)more than proportionately;proportionately
• C)less than proportionately;proportionately
• D)proportionately;more than proportionately

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