Basic determinant of transactions demand and asset demand
Describe the basic determinant of (a) the transactions demand and (b) the asset demand for money?
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(a) The level of nominal GDP. The superior this level, the greater the amount of money demanded for transactions. (b) The interest rate. The greater the interest rate, the lesser the amount of money demanded as an asset.
Describe the decision rule for accepting or rejecting proposed projects while using net present value? While using the net present value decision rule any project along with a net present value greater than or equal to zero would be acceptable.
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