If the Demand for Money Increases,this Will

question 99

Multiple Choice

If the demand for money increases,this will:

• A) increase velocity.
• B) decrease velocity.
• C) have no effect on velocity.
• D) cause the Bank of Canada to increase the money supply.

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Definitions:

Full Employment

Full Employment is a condition where all available labor resources are being used in the most economically efficient way, with minimal unemployment.

Savings Exceeds Investment

Describes a situation in which the amount of income saved by individuals or entities surpasses the amount being invested, which can indicate caution or a lack of attractive investment opportunities.

Keynes

John Maynard Keynes was a British economist whose ideas, known as Keynesian economics, had a major impact on modern economic and political theory and on fiscal policies of governments.

Demand

The desire and ability of consumers to purchase goods or services at a given price.