Get premium membership and access questions with answers, video lessons as well as revision papers.
The level of income: the higher the income, the higher the amount of money held for transactions motive holding all other factors constant
Spending habits of the consumer: the spending habits will determine the amount of money held for transactions motive
Time interval in between income receipts: the shorter the pay period, the less income required for transactions motive, holding other factors constant. As the payment period becomes longer, people will need to hold more money for transactions purpose
Dana05 answered the question on August 14, 2019 at 07:18
- According to Keynes, how is the transactions demand for money affect by the interest rate (Solved)
According to Keynes, how is the transactions demand for money affect by the interest rate
Date posted: August 14, 2019. Answers (1)
- Discuss the process of money creation by commercial banks (Solved)
Discuss the process of money creation by commercial banks
Date posted: August 14, 2019. Answers (1)
- Highlight the properties of money as a medium of exchange (Solved)
Highlight the properties of money as a medium of exchange
Date posted: August 14, 2019. Answers (1)
- Describe how paradox of thrift occurs (Solved)
Describe how paradox of thrift occurs
Date posted: August 14, 2019. Answers (1)
- How is a deflationary gap removed (Solved)
How is a deflationary gap removed
Date posted: August 14, 2019. Answers (1)
- Describe the occurrence of an inflationary gap in the economy (Solved)
Describe the occurrence of an inflationary gap in the economy
Date posted: August 14, 2019. Answers (1)
- What are the challenges faced by clearing and forwarding firms?(Solved)
What are the challenges faced by clearing and forwarding firms?
Date posted: July 29, 2019. Answers (1)
- Differentiate between an inflationary gap and the deflationary gap (Solved)
Differentiate between an inflationary gap and the deflationary gap
Date posted: July 18, 2019. Answers (1)
- Describe the paradox of thrift (Solved)
Describe the paradox of thrift
Date posted: July 18, 2019. Answers (1)
- Derive the multiplier with foreign exchange (Solved)
Derive the multiplier with foreign exchange
Date posted: July 18, 2019. Answers (1)
- Derive the multiplier when tax depends on income (Solved)
Derive the multiplier when tax depends on income
Date posted: July 18, 2019. Answers (1)
- Derive the balanced budget multiplier(Solved)
Derive the balanced budget multiplier
Date posted: July 18, 2019. Answers (1)
- Derive the tax multiplier(Solved)
Derive the tax multiplier
Date posted: July 18, 2019. Answers (1)
- Derive the multiplier with government spending (Solved)
Derive the multiplier with government spending
Date posted: July 18, 2019. Answers (1)
- Derive the multiplier for investment (Solved)
Derive the multiplier for investment
Date posted: July 18, 2019. Answers (1)
- Derive the multiplier for induced investment (Solved)
Derive the multiplier for induced investment
Date posted: July 18, 2019. Answers (1)
- What factors cause a shift in the IS curve(Solved)
What factors cause a shift in the IS curve
Date posted: July 18, 2019. Answers (1)
- derive of the IS equation using the expenditure approach and assuming the absence of government. (Solved)
Derive the IS equation using the expenditure approach and assuming the absence of government.
Date posted: July 18, 2019. Answers (1)
- Describe the life cycle income hypothesis of consumption (Solved)
Describe the life cycle income hypothesis of consumption
Date posted: July 18, 2019. Answers (1)
- Describe the permanent income hypothesis of consumption (Solved)
Describe the permanent income hypothesis of consumption
Date posted: July 18, 2019. Answers (1)