Question

Money demand refers to a how much income people want to make per year. b how much wealth people want to hold in liquid form. c the total quantity of financial assets that people want to hold. d how much currency the Federal Reserve decides to print.

Answer 1

Answer:

b. how much wealth people want to hold in liquid form.

Explanation:

Money demand refers to the amount of liquid assets or wealth, which can be quickly converted to cash, an individual desires hold at a particular point in time, which enables the individual to easily carry out transactions such as exchange of goods and services. It is simply referred to as the desire of people to hold cash. It does include illiquid physical assets that cannot be quickly converted to cash. It includes cash or bank deposits.