In the ATM Model of the Demand for Cash

question 23

Multiple Choice

In the ATM model of the demand for cash

• A)both the nominal interest rate and the cost of going to an ATM are endogenous variables.
• B)both the nominal interest rate and the cost of going to an ATM are exogenous variables.
• C)the nominal interest rate is an exogenous variable while the average cash balances is an endogenous variable.
• D)the nominal interest rate is an endogenous variable while the cost of going to an ATM is an exogenous variable.

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