Question

Compare transaction demand to asset demand in the market. (1 point)

Transaction demand is the cost of the consumer or capital good being
O purchased, while asset demand is the amount of investments needed to
purchase the same consumer or capital good.

• Transaction demand is the liquidity needed to purchase consumer and capital goods, while asset demand is holding money as stored value for later use.

Transaction demand is holding money as stored value for later use, whereas asset demand is the liquidity needed to purchase consumer and capital goods.

Transaction demand is the need for assets and investments to purchase goods
• and services. Asset demand is the liquidity of assets needed to purchase goods and services.

Answer 1

[AI-generated answer — Bot GPT 3.5]

Overall, transaction demand is focused on the immediate purchase of goods and services, while asset demand is more focused on holding assets or investments for future use or as a store of value. Transaction demand is driven by current consumption needs, while asset demand is driven by longer-term financial goals.