A Major Contributing Factor to the Instability of Money Demand

question 34

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

---

Definitions:

Double Bind

A psychological predicament in which an individual receives two or more conflicting messages, and one message negates the other, making it difficult to appropriately respond.

Avolition

A lack of motivation or inability to initiate and persist in goal-directed activities, often seen in psychiatric disorders.

Atypical Antipsychotic Drugs

A class of medications used to treat psychiatric conditions, distinguished from earlier antipsychotics by their different chemical structure and lower risk of certain side effects.

Schizophrenia Symptoms

The clinical manifestations of schizophrenia, such as hallucinations, delusions, disorganized speech, and impaired cognitive functioning.