As the interest rate falls, people hold ________ money in non-interest-bearing checking accounts instead of savings accounts because the opportunity cost of holding money has ________.
A. less; fallen
B. more; risen
C. more; fallen
D. less; risen
Answer: C
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American households spend more of their incomes on goods than on services.
Answer the following statement true (T) or false (F)
In the simplest Keynesian model, planned investment is assumed to be
a. positively related to income. b. negatively related to income. c. constant. d. absent.
The interest rate is determined by the
a. altruism or greed of bankers. b. demand for loanable funds. c. supply for loanable funds. d. supply and demand for loanable funds.
People are classified as unemployed if
A. they choose to exit the labor force because they cannot find a job. B. they are not working for voluntary reasons. C. they are willing and able to work but cannot find a job. D. they do not have a job because they choose to work at home for no pay.