In General,which of the Following Statements Is an Accurate Description

question 123

Multiple Choice

In general,which of the following statements is an accurate description of economists' assumptions about households? Households

• A)make consistent decisions,maximize utility,and are the principal owners of the factors of production.
• B)do not make consistent decisions,maximize satisfaction,and are the principal owners of the factors of production.
• C)make consistent decisions,maximize profits,and are the principal users of the factors of production.
• D)do not make consistent decisions,maximize profits,and are the principal users of the factors of production.
• E)make consistent decisions,maximize savings,and are the principal users of the factors of production.

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Definitions:

Official Money Supply

The total amount of monetary assets available in an economy at a specific time, as measured and published by the central bank.

Precautionary Demand

The desire to hold cash or liquid assets as a safeguard against potential financial emergencies.

Speculative Demand

The demand for assets or goods not for their immediate consumption or use, but for the purpose of resale at a higher price in the future.

Transaction Demand

The demand for money as a medium of exchange, influenced by the level of economic activity.