Velocity is rising-then demand for money must be falling

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Reference no: EM13795879

True or false?

1. At any point to the right of the IS curve, total leakages must exceed total injections.

2. If velocity is rising, then the demand for money must be falling.

3. The transactions motive for holding/demanding money is related primarily to the fact that money serves as a store of value.

4. The asset (liquidity preference, or speculative) motive/demand for money relates primarily to money’s medium of exchange function.

5. A Keynesian would view expansionary monetary policy as having its impact primarily through its effect on interest rates and thus consumption.

Reference no: EM13795879

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