Which of the following statements is true?
A) Interest rates are directly related to the price of old or existing bonds.
B) The monetarist transmission mechanism is indirect whereas the Keynesian transmission mechanism is direct.
C) The interest rate is the opportunity cost of holding money.
D) a and b
E) a, b and c
C
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Economists depict distribution of income by drawing a Lorenz curve above the diagonal
Indicate whether the statement is true or false
Under monopolistic competition, profits cannot persist because new firms will be attracted to the market.
Answer the following statement true (T) or false (F)
An "open market operation" is said to occur when the Fed
A) arranges for the merger of two banks. B) changes the interest rate at which it lends reserves. C) transfers reserves between banks. D) buys or sells government securities.
Refer to the given table. Relative to column A, column B represents:Price Per UnitColumn A Units Per YearColumn B Units Per Year$20100110$308595$407080$505565$604050
A. an increase in demand. B. a decrease in supply. C. an increase in supply. D. a decrease in demand.