Most Empirical Studies of Money Demand Find That

question 53

Multiple Choice

Most empirical studies of money demand find that:

• A) the income elasticity of money demand is greater than one-half,and the interest elasticity of money demand is less than one-half.
• B) the income elasticity of money demand is less than one-half,and the interest elasticity of money demand is greater than one-half.
• C) both the income elasticity of money demand and the interest elasticity of money demand are less than one-half.
• D) both the income elasticity of money demand and the interest elasticity of money demand are greater than one-half.

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired result or outcome; in a second definition, the capability of producing the intended result or achievement of objectives.

Persuade

To convince someone to do or believe something through reasoning or argument.

Stereotypes

Widely held but fixed and oversimplified image or idea of a particular type of person or thing.