This is the amount that households, firms and governments hold for future exchange of goods and services. The agencies hold money because income and expenditure flows are not synchronized in time. Expenditure tends to be continuous while income is discrete. Money is therefore required to bridge the gap between receipts and disbursements
Dana05 answered the question on August 14, 2019 at 07:19
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Briefly explain the factors that affect the amount of money held for the transactions motive
(Solved)
Briefly explain the factors that affect the amount of money held for the transactions motive
Date posted:
August 14, 2019
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Answers (1)
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According to Keynes, how is the transactions demand for money affect by the interest rate
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According to Keynes, how is the transactions demand for money affect by the interest rate
Date posted:
August 14, 2019
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Discuss the process of money creation by commercial banks
Date posted:
August 14, 2019
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Highlight the properties of money as a medium of exchange
Date posted:
August 14, 2019
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Describe how paradox of thrift occurs
Date posted:
August 14, 2019
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How is a deflationary gap removed
Date posted:
August 14, 2019
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(Solved)
Describe the occurrence of an inflationary gap in the economy
Date posted:
August 14, 2019
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(Solved)
What are the challenges faced by clearing and forwarding firms?
Date posted:
July 29, 2019
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(Solved)
Differentiate between an inflationary gap and the deflationary gap
Date posted:
July 18, 2019
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Answers (1)
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(Solved)
Describe the paradox of thrift
Date posted:
July 18, 2019
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Answers (1)
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(Solved)
Derive the multiplier with foreign exchange
Date posted:
July 18, 2019
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Answers (1)
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(Solved)
Derive the multiplier when tax depends on income
Date posted:
July 18, 2019
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Answers (1)
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(Solved)
Derive the balanced budget multiplier
Date posted:
July 18, 2019
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Answers (1)
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(Solved)
Derive the tax multiplier
Date posted:
July 18, 2019
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Answers (1)
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(Solved)
Derive the multiplier with government spending
Date posted:
July 18, 2019
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Answers (1)
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(Solved)
Derive the multiplier for investment
Date posted:
July 18, 2019
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Answers (1)
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(Solved)
Derive the multiplier for induced investment
Date posted:
July 18, 2019
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(Solved)
What factors cause a shift in the IS curve
Date posted:
July 18, 2019
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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
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(Solved)
Describe the life cycle income hypothesis of consumption
Date posted:
July 18, 2019
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Answers (1)