The opportunity cost of holding money is measured by
A. the price of government bonds.
B. the return from company stock shares that the money can buy.
C. the interest yield that could have been earned by holding some other asset.
D. the liquidity of interest-bearing assets.
Answer: C
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All of the following are preconditions for economic growth EXCEPT i. property rights. ii. democracy. iii. free markets
A) i only B) ii only C) iii only D) Both i and ii E) i, ii, and iii
The demand for foreign currency in the United States is a
A) direct demand. B) derived demand based on the demand for U.S. products. C) derived demand based on the demand for foreign products. D) direct demand based on the demand for U.S. dollars.
Which one of the following will shift the consumption function downward?
a. An increase in disposable income. b. A decrease in disposable income. c. Legislation making credit harder to obtain. d. Lower tax rates. e. A technological breakthrough.
How does an economy's central bank manage the supply of money through official reserve transactions?
What will be an ideal response?