Recall the Application. The decrease in price of illegal drugs could be caused by either a(n) ________ in demand or a(n) ________ in supply of the drugs.
A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease
Question 2
The demand for money that arises because holding money over short periods is less risky than holding stocks or bonds is called the
A) transactions demand for money. B) opportunity cost demand for money.
C) liquidity demand for money. D) speculative demand for money.
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