In Monetarist theory, the demand to hold money is: a. The same ...

[pragya sharda]

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.

[bobsmith]

Answer to Question 1

.E

Answer to Question 2

.D

[pragya sharda]

Excellent

[pratush dev]

Gracias!