Reference no: EM131452585
11 true/false (Reason for your "False" answers (specify the question number and a brief explanation below):
1. Even if we get paid more frequently, as long as our income remains the same we will still demand the same amount of money.
2. Improvements in the clearing system tend to reduce our demand for money.
3. Since credit cards are not money, their use has no effect on the demand for money.
4. The introduction of paper money in 12th century Persia was unsuccessful.
5. Rothbard contends that the biggest influence on our demand for money are our inflationary expectations.
6. Mises laid out the framework that leads to hyperinflation over four distinct phases.
7. According to Friedman, temporary changes in our incomes will not affect our demand for money.
8. According to Friedman, the most important factor in determining our demand for money is the interest rate.
9. Friedman's views on the importance of money in our economy is referred to as the modern quantity theory of money.
10. Keynes identified the demand for money as coming from the demand for transactions purposes, precautionary purposes and speculative purposes.
11. According to the Keynesian view, when interest rates are relatively low, it is a good time to buy and hold bonds.