Keynes argued that the transactions component of the demand for money was primarily determined by the level of people's ________,which he believed were proportional to ________.
A)transactions;income
B)transactions;age
C)incomes;wealth
D)incomes;age

Question

Quizplus · Accepted Answer

Keynes argued that the demand for money for transactions purposes was primarily driven by people's level of transactions, which he believed were tied to their level of income. Therefore, the correct choice is A - transactions; income.

Keynes Argued That the Transactions Component of the Demand for Money