Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Which of the following is not a component of money demand? a
Which of the following is not a component of money demand?
a.
Aggregate demand.
b.
Speculative demand.
c.
Precautionary demand.
d.
Transactions demand.
Expert Solution
Answer :
a. Aggregate Demand.
The demand for money refers to how much assets individuals wish to hold in the form of money (as opposed to illiquid physical assets.) It is sometimes referred to as liquidity preference. The demand for money is related to income, interest rates and whether people prefer to hold cash(money) or illiquid assets like money.
Types of demand for money:
Transaction demand – money needed to buy goods – this is related to income.
Precautionary demand – money needed for financial emergencies.
Asset motive/speculative demand – when people wish to hold money rather than buy assets/bonds/risky investment.
Thus, Aggregate demand is not a component of money demand.
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.





