Answer the following True/ False ( explain your answer) 1) Transaction demand for money is positively...

Answer the following True/ False ( explain your answer)

1) Transaction demand for money is positively related to both income level and the frequency at which people receive the income. True/false?
2) Demand for money is not a function of rate of interest if money cannot serve as a container of wealth. True/false?
3)For a given rate of interest, individuals (economic agents) may not have same speculative demand for money since they have different level of income. True/false?
4) If we move along the LM curve from left to right ( ) then transaction demand for money will increase, speculative demand for money may increase or decrease, and precautionary demand for money will decrease. True/false?

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Expert Solution

Rahul Sunny answered 1 year ago

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