Which of the following would be expected to increase the demand for money in the U.S.?

A. Financial investors become concerned about increasing riskiness of stocks.
B. The economy enters a recession.
C. On-line banking allows customers to transfer funds between checking and stock mutual funds 24 hours a day.
D. Political instability decreases dramatically in developing nations.


Answer: A

Economics

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If aggregate demand turns out to be higher than what was anticipated in an economy, then:

a. the economy experiences a contractionary gap. b. the short-run equilibrium occurs at the potential output. c. the short-run equilibrium occurs at an output level lower than potential output. d. the short-run equilibrium occurs at an output level higher than potential output.

Economics

You have a bond that pays $18 per year in coupon payments. Which of the following would result in a decrease in the price of your bond?

A) Coupon payments on newly-issued bonds fall to $15 per year. B) The likelihood that the firm issuing your bond will default on debt decreases. C) The price of a share of stock in the company rises. D) Coupon payments on newly-issued bonds rise to $22 per year.

Economics

Describe the four phases of the business cycle.

What will be an ideal response?

Economics

Refer to Scenario 9.6 below to answer the question(s) that follow. SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.Refer to Scenario 9.6. Celeste's total fixed costs equal

A. $2,000. B. $18,000. C. $20,000. D. $22,000.

Economics