The primary reason people hold money is
a. to keep wealth in a less liquid form.
b. to use it as a medium of exchange.
c. to use it for investment.
d. to earn interest.
b
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Assume the Fed wants to lower the interest rate. How does the Fed lower the interest rate in the short run?
What will be an ideal response?
In the loanable funds framework, the ________ is measured on the vertical axis
A) price of bonds B) interest rate C) quantity of bonds D) quantity of loanable funds
In the long run, all firms in a perfectly competitive industry
A) earn economic profits. B) break even. C) suffer economic losses. D) sell differentiated products to earn economic profits.
Among these countries, which has the highest hourly wage and fringe benefits in manufacturing?
A. Germany B. Japan C. The U.S. D. Canada