The opportunity cost of holding money is that you
A) forego interest on an alternative asset.
B) must make more trips to the bank to manage the money.
C) have trouble balancing your check book.
D) pay a higher tax rate.
E) run a greater risk of being robbed.
A
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Suppose roses are currently selling for $30 per dozen, but the equilibrium price of roses is $20 per dozen. We would expect a
a. shortage to exist and the market price of roses to increase. b. shortage to exist and the market price of roses to decrease. c. surplus to exist and the market price of roses to increase. d. surplus to exist and the market price of roses to decrease.
Other things the same, an increase in the price level makes the dollars people hold worth
a. more, so they are willing to spend more. b. more, so they are willing to spend less. c. less, so they are willing to spend more. d. less, so they are willing to spend less.
Which of the following is not a result of a higher federal budget deficit?
A) a higher real interest rate B) an appreciation of the currency C) a rise in exports D) a fall in the price of foreign inputs
Using data from Trade Adjustment Assistance claims, we can make an accurate estimate of:
a. the variety of products U.S. consumers import from Mexico. b. U.S. exports to Mexico that give Mexican consumers more product variety. c. the barriers to trade erected by affected firms. d. the unemployment caused by NAFTA.