Author Question: Keynes called money people hold to make routine day-to-day purchases the: a. transactions demand ... (Read 285 times)

armygirl · **on:** Jun 30, 2018

Keynes called money people hold to make routine day-to-day purchases the:
a. transactions demand for holding money.
b. precautionary demand for holding money.
c. speculative demand for holding money.
d. store of value demand for holding money.

Question 2

Why is it important to distinguish nominal GDP from real GDP?

SeanoH09 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

a

Answer to Question 2

A distinction between nominal GDP and real GDP is important to know whether the economy has really grown or not. Only increases in real GDP indicate a true expansion in our nation's production that may translate into an increase in our average absolute standard of living.