According to the inventory theoretic approach to money demand, an increase in erage fees Select one. a.could either increase or decrease the optimum number of bond market transactions b. does not change the optimum number of bond market transactions. C.decreases the optimum number of bond market transactions d.increases the optimum number of bond market transactionsAccording to the inventory theoretic approach to money demand, an increase in erage fees Select one. a.could either increase or decrease the optimum number of bond market transactions b. does not change the optimum number of bond market transactions. C.decreases the optimum number of bond market transactions d.increases the optimum number of bond market transactionsA bank creates money when it Select one a.converts its excess reserve into an interest-earning asset b collects an interest payment on a loan c.accepts a deposit from a customer d all of the aboveA bank creates money when it Select one a.converts its excess reserve into an interest-earning asset b collects an interest payment on a loan c.accepts a deposit from a customer d all of the aboveUnder the flexible accelerator model, the larger the lambda, the slower the response of Investment to changes in current income Select one True FalseUnder the flexible accelerator model, the larger the lambda, the slower the response of Investment to changes in current income Select one True FalseThe instability of money demand during the 1970s and 1980s Select one. a could not be determined for any category of money aggregate b.was most pronounced for the M3 aggregate c was most pronounced for the MI aggregate dawas most pronounced for the M2 aggregateThe instability of money demand during the 1970s and 1980s Select one. a could not be determined for any category of money aggregate b.was most pronounced for the M3 aggregate c was most pronounced for the MI aggregate dawas most pronounced for the M2 aggregate