Business, 21.03.2020 00:35 Kstearns694
John gets paid monthly and pays for everything with cash. When he cashes his check he keeps $200 for food, $100 for utilities, $900 for rent, $50 for transportation, $100 for entertainment and $300 for unexpected expenditures. Which of the following statements is true?
A)The transactions demand for money is $450, the precautionary demand is $300 and the asset demand is $900.
B)The transactions demand for money is $350, the precautionary demand is $1,150 and the asset demand is $150.
C)The transactions demand for money is $350, the precautionary demand is $950 and the asset demand is $0.
D)The transactions demand for money is $1,350, the precautionary demand is $300 and the asset demand is $0.
Answers: 1
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