Alexa keeps $500 readily accessible in her checking account so that she can take advantage of changes in the prices of other financial assets. This illustrates the
A) speculative demand for money.
B) transfer demand for money.
C) precautionary demand for money.
D) transactions demand for money.
Ans: A) speculative demand for money.
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Suppose you borrow $1,000 at an interest rate of 12 percent. If the expected real interest rate is 5 percent, then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation
A) greater than 7 percent. B) equal to 7 percent. C) less than 7 percent. D) equal to 0 percent.
Provide four reasons for the changes observed in per-pupil spending during the latter half of the twentieth century
What will be an ideal response?
If a monopoly's demand curve shifts to the right, the
A) monopoly will charge a higher price. B) monopoly will charge a lower price. C) monopoly will sell more. D) monopoly's decision cannot be determined.
Which of the following is a responsibility of the Federal Open Market Committee (FOMC)?
a. Levying direct and indirect taxes b. Buying and selling U.S. government bonds c. Setting the discount rate d. Setting the minimum reserve ratio