The Demand for Money Refers to the Desire to

question 302

Multiple Choice

The demand for money refers to the desire to

• A) hold a good that yields utility when it is consumed.
• B) a high income.
• C) spend money because money is used in all transactions.
• D) hold money because money is used in all non-barter transactions.

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Definitions:

Substitutes

are goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Demand Curve

A graph showing the relationship between the quantity of a good or service that consumers are willing to buy and its price.

Price

The pecuniary sum needed, anticipated, or disbursed for purchasing something.

Demand Curve

A Demand Curve illustrates how the quantity demanded of a good or service varies with its price, typically showing an inverse relationship.