This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why do people hold money in the classical model? What will be an ideal ... (Read 63 times)

Lisaclaire

  • Hero Member
  • *****
  • Posts: 569
on: Jun 30, 2018
Why do people hold money in the classical model?
 
  What will be an ideal response?

Question 2

In the closed economy IS-LM model, an increase in government spending crowds-out
 
  a. prices.
  b. the money supply.
  c. consumption.
  d. investment.
  e. both c and d.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

emily12345

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 30, 2018
Answer to Question 1

People hold money because it is a medium of exchange, meaning that it is used in purchasing goods and services. It is not valued as an asset in and of itself.

Answer to Question 2

D


Lisaclaire

  • Member
  • Posts: 569
Reply 2 on: Jun 30, 2018
Gracias!

CAPTAINAMERICA

  • Member
  • Posts: 325
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Gurung people of Nepal Gurung people of Nepal
Values, both those held by individuals and those that represent a nation or people, can undergo deep ... Values, both those held by individuals and those that represent a nation or people, can undergo deep ...
Model for the bending of cilia and flagella Model for the bending of cilia and flagella
Societal pressure to be thin can cause people to feel fat Societal pressure to be thin can cause people to feel fat
The Power of Classical Conditioning The Power of Classical Conditioning
The torpedo model of eukaryotic transcription termination The torpedo model of eukaryotic transcription termination
Video: Types of Burns

For a complete list of videos, visit our video library