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.
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.
Chapter13: Money And The Financial System
Section: Chapter Questions
Problem 2.8P
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