Author Question: In Monetarist theory, the demand to hold money is: a. The same as the demand to borrow real ... (Read 27 times)

pragya sharda · **on:** Jun 30, 2018

In Monetarist theory, the demand to hold money is:
a. The same as the demand to borrow real loanable funds.
b. Upward sloping because as the real risk-free interest rate rises, people want to hold more money.
c. Rather unstable because it changes greatly with movements in the real risk-free interest rate.
d. Neutral, in the sense that it is independent from all macroeconomic variables.
e. Rather stable and does not change greatly with movements in the real risk-free interest rate.

Question 2

If one Mexican peso was worth 0.05 U.S. dollar, then one U.S. dollar would be worth:
a. 0.05 Mexican pesos.
b. 0.05 U.S. dollars.
c. 20 U.S. dollars.
d. 20 Mexican pesos.
e. 5 Mexican pesos.