Three variables affect the demand for money they are _______ and __________?
Correct answer: B. the price level interest rates real income
- A. bank opening hours, the proportion of weekly paid employee's interest rates
- B. the price level interest rates real income
- C. The time of year bank opening hours the price level
- D. The proportion of weekly paid employees the time of year real income
Explanation
Demand for money depends mainly on the price level, interest rates, and real income. Higher income and prices generally increase transaction balances, while higher interest rates raise the opportunity cost of holding money.
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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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