Why is the demand curve for money downward sloping?
a. The opportunity cost of holding money is low when interest rates are steady.
b. The opportunity cost of holding money is low when interest rates are high.
c. The opportunity cost of holding money is high when interest rates are high.
d. The opportunity cost of holding money is high when interest rates are steady.
c. The opportunity cost of holding money is high when interest rates are high.
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Those who generally have low willingness to take on risk are said to be:
A. risk-seekers. B. risk-averse. C. low-risk players. D. high-compensation players.
Wages are said to be "sticky downwards" because this promotes good work effort and ensures that workers and firms share the same goals of efficient production and profit maximization
a. True b. False Indicate whether the statement is true or false
The demand curve facing a typical firm in a perfectly competitive market is horizontal
a. True b. False
Developing countries do:
A. compete with one another for foreign investment, and this competition reduces the benefits from foreign investment. B. not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs. C. not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place. D. compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.