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Author Question: What are three reasons people want to hold money balances? What will be an ideal ... (Read 35 times)

ereecah

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on: Jun 29, 2018
What are three reasons people want to hold money balances?
 
  What will be an ideal response?

Question 2

An important factor in determining a country's rate of economic growth is
 
  A) the diversity of its population.
  B) its rate of saving.
  C) the size of its labor force.
  D) the proportion of the adult population that is working.


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janeli1

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Reply #1 on: Jun 29, 2018
Answer to Question 1

There are three reasons people hold money balances. The transactions demand for money is the demand to hold money to make regular, expected expenditures. The precautionary demand is the money held to meet unplanned expenditures and emergencies. The asset demand for money is to hold money as an asset that is a store of value.

Answer to Question 2

B


ereecah

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

xiazhe

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Reply 3 on: Yesterday
Wow, this really help

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