Which of the following examples would most likely happen when interest rates are high?
a. Mateo takes his money out of treasury bills.
b. Lucia keeps $5,000 under her mattress for a rainy day.
c. Santiago decides to carry more cash in his wallet each day.
d. Maria invests $10,000 in a short-term CD.
d. Maria invests $10,000 in a short-term CD.
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Other things remaining the same, if the quantity of money increases by a given percentage, then in the long run the ________ by the same percentage
A) real interest rate rises B) price level rises C) nominal interest rate falls D) price level falls E) real interest rate falls
If Chinese consumers want to buy US goods, they will
a. buy Yuans to sell US Dollars b. Sell Yuans to buy US Dollars c. Demand Yuan d. Both b and c
Which of the following does NOT follow from the theory of efficient markets
A. no one consistently outperforms the market B. short-run stock price changes are unpredictable C. careful stock research will increase investment returns D. stock prices incorporate all available information
An increase in the marginal propensity to save from .3 to .4 will cause
A) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a smaller effect on output. B) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a larger effect on output. C) the ZZ line to become flatter and a given change in autonomous consumption (c0 )) to have a smaller effect on output. D) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a larger effect on output.