Why does a high interest rate discourage people from holding their money in cash?
(A) They are fearful of inflation.
(B) They cannot be sure that cash will hold its value.
(C) They are more concerned that it will be stolen.
(D) They can earn interest on the cash if it is invested.
Ans: (D) They can earn interest on the cash if it is invested.
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Figure 4.3 illustrates the demand for tacos. An increase in the demand for tacos is represented by the movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
The fact that individuals whose credit worthiness is less than it appears to be are those who are most willing to borrow funds at any given interest rate is an example of
A) moral bonuses. B) diverse origins. C) symmetric information. D) adverse selection.
Distinguish between a closed shop and a union shop. Are either or both shops legal? Explain
What will be an ideal response?
Historical trends in the prices of most natural resources compared to prices of other goods indicate that most natural resources have become scarcer over time
a. True b. False Indicate whether the statement is true or false