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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:

Gastric Residual

The volume of content remaining in the stomach after digestion, which can be measured to assess gastric emptying rate and feeding tolerance.

Tube Feeding

A medical procedure to provide nutrition to patients who cannot eat by mouth, using a tube inserted into the stomach or intestine.

Thermometer

An instrument used to measure temperature.

Manipulate

To handle or control in a skillful manner, often used in the context of therapy or in a derogatory sense to indicate deceitful control.

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