Business, 24.06.2019 00:00 davismar3

Suppose a new "payment technology" allows individuals to make payments using u. s. treasury bonds (i. e., u. s. treasury bonds are immediately cashed when needed to make a payment and that balance is transferred to the payee). how do you think this payment technology would affect the transactions component of the demand for money? a. this would lead to a decreased need to hold cash for transactions; however, the transactions demand for money would remain unchanged. b. this would lead to a decreased need to hold cash for transactions, thus the transactions demand for money would decrease. c. this would lead to an increased need to hold cash for transactions, thus the transactions demand for money would increase. d. this technology would not change the transactions component of the demand for money.

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Suppose a new "payment technology" allows individuals to make payments using u. s. treasury bonds (i...