The main reason that people hold money to buy things is referred to as the ?
Correct answer: C. Transactions motive
- A. Profit motive
- B. Precautionary motive
- C. Transactions motive
- D. speculation motive
Explanation
The transactions motive is the desire to hold money for ordinary purchases of goods and services. The precautionary motive concerns unexpected needs, while speculation concerns asset prices and interest rates.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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