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Questions and Answers
According to Friedman's theory, money is primarily viewed as:
According to Friedman's theory, money is primarily viewed as:
- A durable consumer good held for the services it renders (correct)
- A temporary means of exchange
- An inflationary factor
- A liability for the government
Friedman's theory of demand for money is influenced by which of the following factors?
Friedman's theory of demand for money is influenced by which of the following factors?
- Government policies, international trade, and business cycles
- Interest rates, money supply, and technological advancements
- Total wealth, relative price of assets, and wealth holder's preferences (correct)
- Exchange rates, fiscal policies, and inflation expectations
The demand for money is assumed to depend on which of the following major factors?
The demand for money is assumed to depend on which of the following major factors?
- Total wealth to be held in various forms of assets (correct)
- Price level changes and interest rate differentials
- Government expenditure and taxation policies
- Technological advancements in banking systems
According to Friedman's theory, what influences the cost of holding cash balance?
According to Friedman's theory, what influences the cost of holding cash balance?
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In Friedman's view, how does an increase in the stock of money held affect its value?
In Friedman's view, how does an increase in the stock of money held affect its value?
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