Which of the Following Does Not Cause the Money Demand
Which of the following does not cause the money demand curve to shift?
A) a change in the interest rate
B) a change in the price level
C) a change in transfer costs
D) a change in real GDP
An increase in financial innovations such as increased network of ATM machines and the widespread acceptance of debit cards
A) will shift the demand for money to the right.
B) will shift the demand for money to the left.
C) increases the quantity of money people want to hold at each interest rate.
D) decreases the quantity of money people want to hold at each interest rate.
All of the following are determinants of money demand except
A) the cost of transferring funds from interest earning assets to checking accounts.
B) expectations about the future price level.
C) the money supply.
D) Real GDP.
The creation of savings plans such as savings deposits and money market mutual accounts that allow easy transfer of funds between interest-earning assets and checkable deposits tends to
A) lower the cost of holding money.
B) reduce the demand for money.
C) increase the demand for money.
D) increase the risk of holding money.