The Transaction Demand for Money Varies

question 65

Multiple Choice

The transaction demand for money varies

• A) directly with the interest rate.
• B) directly with nominal GDP.
• C) inversely with nominal GDP and real GDP.
• D) inversely with nominal GDP only.

---

Definitions:

Fine Motor Skills

The coordination of small muscles, in movements—usually involving the synchronization of hands and fingers—with the eyes.

Preoperational Thought

A stage in Jean Piaget's theory of cognitive development where children aged 2-7 years begin to engage in symbolic play and struggle with logic and taking the perspective of others.

Irreversibility

Lack of recognition that actions can be reversed.

Egocentrism

In developmental psychology, a characteristic of children's thinking during the preoperational stage, where they are unable to see situations from perspectives other than their own.