In the New Monetarist Model,the two key classes of liquid assets in the economy are:
A) currency and financial liquid assets.
B) currency and housing.
C) housing and stocks.
D) currency and stocks.
E) financial liquid assets and stocks.

Question

Quizplus · Accepted Answer

The New Monetarist Model identifies currency and financial liquid assets as the two key classes of liquid assets in the economy. Currency refers to physical money in circulation, while financial liquid assets include bank accounts, money market accounts, and other assets that can easily be converted to cash. The model focuses on the role of these assets in determining the overall level of economic activity and inflation.

In the New Monetarist Model,the Two Key Classes of Liquid