In the schematic theory of economic policy,the demand for money is considered
A)a policy instrument.
B)an exogenous nonpolicy variable.
C)a structural relation.
D)a target variable.
E)an irrelevant side effect.

Question

Quizplus · Accepted Answer

The demand for money is considered a structural relation in the schematic theory of economic policy, as it describes how economic agents' behavior (e.g., their demand for liquidity) is influenced by various factors such as interest rates and income levels.

In the Schematic Theory of Economic Policy,the Demand for Money