All Other Factors Equal, If the Costs of Converting Bonds

question 83

Multiple Choice

All other factors equal, if the costs of converting bonds and other financial securities to a means of payment increase:

• A)The transactions demand for money should increase
• B)The transactions demand for money should decrease
• C)It shouldn't impact the transactions demand for money
• D)Nominal interest rates should decrease

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Definitions:

Single Factor

In economics, a variable or input that is considered in isolation to evaluate its impact on an outcome or process.

Normative Economics

A branch of economics that focuses on what ought to be or what should happen, often involving judgments and prescriptions for economic policy.

Positive Economics

A branch of economics that seeks to describe and explain the economy as it actually is, without making judgments about its effectiveness.

Judgments

Decisions or conclusions reached after consideration, often in a legal context or in personal assessment.