In his Liquidity Preference Framework, Keynes assumed that money has a zero rate of return; thus
A) when interest rates rise, the expected return on money falls relative to the expected return on bonds, causing the demand for money to fall.
B) when interest rates rise, the expected return on money falls relative to the expected return on bonds, causing the demand for money to rise.
C) when interest rates fall, the expected return on money falls relative to the expected return on bonds, causing the demand for money to fall.
D) when interest rates fall, the expected return on money falls relative to the expected return on bonds, causing the demand for money to rise.
A
You might also like to view...
We know that the minimum wage causes unemployment. So, why does the government impose one?
What will be an ideal response?
The percentage of people employed aged 16 years and older divided by the working-age population is known as the
A) employment rate. B) employment-to-population ratio. C) labor force participation rate. D) working-age population ratio.
Which of the following statements about business organizations is TRUE?
A) Partnerships are more common than proprietorships and are responsible for a larger percentage of business receipts. B) Proprietorships are more common than either partnerships or corporations but are responsible for the smallest share of total business receipts. C) Corporations are larger in number than either proprietorships or partnerships and also receive a larger percentage of total business receipts. D) Partnerships are larger than both proprietorships and corporations but are less numerous than corporations.
When more and more doses of fertilizers are added to a fixed plot of agricultural land, the crop yield initially declines but eventually rises
a. True b. False Indicate whether the statement is true or false