Keynes called money people hold to make routine day-to-day purchases the O transactions demand for holding money. O precautionary demand for holding money. O speculative demand for holding money. O store of value demand for holding money. Question 48 The theory of comparative advantage suggests that nations should produce a good if they: have the lowest opportunitv cost O have the lowest wages. O have the most resources. can produce more of the good than any other nation Question 49 Monetarists argue that fiscal policy 1s ineftective because the velocity of monev 1s predictable the crowding-out ettect reduces invesunent prices and wages are sticky in the short run it causes the value of the dollar to depreciate