The Phenomenon of Hoarding Money When the Interest Rate Falls

question 167

Multiple Choice

The phenomenon of hoarding money when the interest rate falls to low levels is an outcome of

• A) the liquidity trap.
• B) the transactions demand for money.
• C) the precautionary demand for money.
• D) deflation.

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Definitions:

Y-Intercept

The point at which a line or curve intersects the Y-axis of a graph.

Regression Source Table

A table containing statistical information that summarizes the output of a regression analysis.

Model Significant

An indication that the model's predictions significantly differ from what would be expected by chance.

Correlation Coefficient

A numerical measure of the strength and direction of a linear relationship between two variables.