"The larger is the quantum of transactions to be made, the smaller is the quantity of money demanded." Which of the following options is true in regards to the above statement? |
The statement is true The statement is false The statement is partially true The statement is partially false |
The statement is false |
Since money is required to conduct transactions, the value of transactions will determine the money people will want to keep: the larger is the quantum of transactions to be made, the larger is the quantity of money demanded. |