A Major Contributing Factor to the Instability of Money Demand

question 85

Multiple Choice

A major contributing factor to the instability of money demand over the past 25 years is the:

• A) introduction of financial instruments that pay higher returns than money but can be used as a means of payment.
• B) Fed has changed the way the money aggregates are defined.
• C) failure of many savings and loans.
• D) introduction of credit cards.

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