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 105 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
Wow, this really help

xthemafja

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

ear model ear model
Eye Model Eye Model
A Simple Neural Model of Classical Conditioning A Simple Neural Model of Classical Conditioning
Shope’s Model of Young Driver Crash Risks The model shows that many factors contribute to crash ris Shope’s Model of Young Driver Crash Risks The model shows that many factors contribute to crash ris
The energy set-point view that is the basis of many people’s thinking about hunger and eating. The energy set-point view that is the basis of many people’s thinking about hunger and eating.
Effect of “Moral Restraint” in the Malthusian Model Effect of “Moral Restraint” in the Malthusian Model
Video: hGH (protein synthesis, growth and development)

For a complete list of videos, visit our video library