The Demand for Money

question 49

Multiple Choice

The demand for money

• A)d and e are correct
• B)all of the following are correct
• C)decreases as the average selling price of a unit of output increases
• D)increases as GDP increases
• E)is increased by credit card usage

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Definitions:

Mutually-Agreeable Trade

A transaction or trade that both parties involved consent to and believe will benefit them.

Opportunity Cost

The expense incurred by not selecting the second-best option when deciding among various choices.

Willingness to Pay

The maximum amount an individual is prepared to expend on a good or service to procure it.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the amount they actually receive.