What trade-off must be considered when deciding how much of your wealth is to be held as money relative to bonds?
a. Bonds pay more interest and are easier to use for payment.
b. Bonds pay less interest but are less convenient.
c. Bonds pay more interest but are less convenient relative to money.
d. Money pays less interest and is less convenient to use.
e. Money pays more interest and is less convenient to use.
C
You might also like to view...
Based on the figure above, in which quarter or quarters did an expansion occur?
A) in 2014, 2nd quarter B) in 2013, 2nd quarter C) between 2013, 2nd quarter to 2014, 2nd quarter D) between 2012, 2nd quarter to 2013, 2nd quarter and also between 2014, 2nd quarter to the end of the figure E) There are no expansions illustrated in the figure.
An increase in the quantity of money supplied shifts the money supply curve to the ________, and the equilibrium interest rate ________, everything else held constant
A) right; falls B) right; rises C) left; falls D) left; rises
John is a 55-year-old male smoker, about 50 pounds overweight, who has high blood sugar and drinks to excess a couple of times each month. Because of adverse selection in health insurance,
A) John is less likely to buy health insurance than the average person, because the average person's policy premiums will be based on his risk, not the average risk. B) John is more likely to buy health insurance than the average person, because his policy premiums will be based on the average risk, not his personal risk. C) when John gets health insurance, he will be less likely to take care of himself. D) when John gets health insurance, he will be more likely to take care of himself. E) if John doesn't have health insurance already, he will not be able to get it.
Which of the following is assumed for establishing the unbiasedness of Ordinary Least Square (OLS) estimates?
A. The error term has an expected value of 1 given any value of the explanatory variable. B. The regression equation is linear in the explained and explanatory variables. C. The sample outcomes on the explanatory variable are all the same value. D. The error term has the same variance given any value of the explanatory variable.