The opportunity cost of holding money
A. varies inversely with the interest rate.
B. varies directly with the interest rate.
C. varies inversely with the level of economic activity.
D. is zero because money is not an economic resource.
Answer: B
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If a perfectly competitive firm maximizes short-run profits, its marginal revenue will be positive and less than its price
Indicate whether the statement is true or false
As the nominal interest rate increases ________
A) it becomes more costly to hold money instead of bonds B) the quantity of money demanded falls C) the opportunity cost of holding money rises D) all of the above E) none of the above
Small differences in economic growth rates translate into significant differences in living standards
a. True b. False Indicate whether the statement is true or false
Why can't the expectations hypothesis stand alone as an adequate theory to explain yield curves?
What will be an ideal response?