Problem
1. Why is the Cambridge k more likely to change than is V in the Quantity Theory?
2. Both the precautionary and the speculative motives for holding money arise from the existence of uncertainty - uncertainty about what in each case?
3. Why is the speculative demand for money a demand for idle balances? What happens to the velocity of money when idle balances increase?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.