As the interest rate falls, people hold ______ money instead of bonds because the opportunity cost of holding money has _____.
a) more; fallen
b) less; fallen
c) more; risen
d) less; risen
Answer: a) more; fallen
You might also like to view...
The aggregate supply curve will shift to the right when the:
a. amount of labor in the society decreases. b. capital stock of the society shrinks. c. amount of natural resources in the society gets smaller. d. amount of labor in the society increases. e. price level in the economy rises.
Marginal revenue is generally __________ for businesses that do not operate under conditions of perfect competition.
A. lower than the price B. higher than the price C. lower than the average cost D. lower than the marginal product
Government expenditures for social security and unemployment insurance are, for GDP accounting purposes, considered ________.
A. government purchases, and are not included in government spending as part of GDP B. transfer payments, and are not included in government spending as part of GDP C. transfer payments, and are included in government spending as part of GDP D. government purchases, and are included in government spending as part of GDP
AutoCorp faces a demand of P = $30,000 ? 5 Q for its primary line of sporty mini-cars in Little Rock. The marginal cost of producing the car is $8,000. Discuss the implications of selling the new mini-car through its own dealership or through the local dealer: MiniMart.
What will be an ideal response?