If you kept your money under your mattress rather than keeping it in a savings account at your local bank,
A. you would not incur an opportunity cost.
B. the opportunity cost of such an action would be the forgone interest of not putting the money in a savings account.
C. the opportunity cost of such an action would be the gas money it took to drive to the bank.
D. None of the choices are true.
B. the opportunity cost of such an action would be the forgone interest of not putting the money in a savings account.
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The Federal Reserve finances its credit policy with
A) reserve deposits that private banks hold with the Fed. B) the insurance premiums collected by the FDIC. C) borrowing from the federal government. D) funding from the U.S. Treasury Department.
The price of cotton clothing falls. As a result,
A) the quantity demanded of cotton clothing increases. B) the demand for cotton clothing increases. C) the quantity demanded of cotton clothing decreases. D) the demand for cotton clothing decreases. E) both the demand for cotton clothing increases and the quantity demanded of cotton clothing increases.
An increase in default risk on corporate bonds ________ the demand for these bonds, but ________ the demand for default-free bonds, everything else held constant
A) increases; lowers B) lowers; increases C) does not change; greatly increases D) moderately lowers; does not change
Suppose Country A has a closed economy. If Country A's GDP remains constant, but its consumption and government spending increase, then: a. Country A's national saving will decrease. b. Country A's national saving will increase. c. Country A's net taxes will increase
d. Country A's net taxes will decrease.