Task 1. Identify the immediate effect (increase or decrease) of the following cases to the transactions/precautionary/speculative demand for money. (Follow this format: increase speculative demand) ( a. The rise of Geash and PayMaya. b. The rise of interest rate on time deposits. c. Fear of an imminent collapse of the government. d. Increase in the riskiness of stocks. e. Increase in the expected returns of other assets.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter13: Money And The Financial System
Section: Chapter Questions
Problem 2.8P
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Task 1. Identify the immediate effect (increase or decrease) of the following cases to the
transactions/precautionary/speculative demand for money. (Follow this format: increase -
speculative demand) (
a. The rise of Gcash and PayMaya.
b. The rise of interest rate on time deposits.
c. Fear of an imminent collapse of the government.
d. Increase in the riskiness of stocks.
Increase in the expected returns of other assets.
Transcribed Image Text:Task 1. Identify the immediate effect (increase or decrease) of the following cases to the transactions/precautionary/speculative demand for money. (Follow this format: increase - speculative demand) ( a. The rise of Gcash and PayMaya. b. The rise of interest rate on time deposits. c. Fear of an imminent collapse of the government. d. Increase in the riskiness of stocks. Increase in the expected returns of other assets.
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