Question
In 1982, new legislation allowed banks to pay interest on checking deposits, which they could not do previously. Assume we define money to include checking
In 1982, new legislation allowed banks to pay interest on checking deposits, which they could not do previously. Assume we define money to include checking deposits.
a) [6 points] What effect did this legislation have on money demand? Explain.
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Financial Accounting Making The Connection
Authors: J David Spiceland, Wayne Thomas, Don Herrmann
1st Edition
0077862260, 9780077862268
