Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
Question
The table below describes two different demands for money and the supply of money. Answer the following questions based on this
table.
Instructions: Enter your answers as a whole number.
Total Demand for Money
Price of
Money
Money
Supply
Demand 1
Demand 2
Total Money
Demand
1
$400
$300
$150
$
2
400
250
150
3
400
200
150
400
150
150
5
400
100
150
a. What is the price of money?
O Consumer Price Index
O Interest rate
O Inflation rate
O Production rate
b. What type of demand for money does Demand 1 represent?
O Unit-of-account demand
O Asset demand
O Total demand
O Transaction demand
c. What type of demand for money does Demand 2 represent?
O Total demand
O Unit-of-account demand
O Transaction demand
O Asset demand
d. Complete the "Total Money Demand" column in the above table.
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Transcribed Image Text:The table below describes two different demands for money and the supply of money. Answer the following questions based on this table. Instructions: Enter your answers as a whole number. Total Demand for Money Price of Money Money Supply Demand 1 Demand 2 Total Money Demand 1 $400 $300 $150 $ 2 400 250 150 3 400 200 150 400 150 150 5 400 100 150 a. What is the price of money? O Consumer Price Index O Interest rate O Inflation rate O Production rate b. What type of demand for money does Demand 1 represent? O Unit-of-account demand O Asset demand O Total demand O Transaction demand c. What type of demand for money does Demand 2 represent? O Total demand O Unit-of-account demand O Transaction demand O Asset demand d. Complete the "Total Money Demand" column in the above table.
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