When people are deciding whether to deposit money in a bank:
A. people don't accurately account for the risk of losing savings.
B. they will deposit the same amount in response to any given interest rate.
C. everyone will respond exactly the same to any given interest rate.
D. some people will require a higher interest rate to deposit the same amount of money.
Answer: D
You might also like to view...
When there is an increase in demand,
A. the demand curve shifts to the right of the original demand curve. B. the demand curve rotates clockwise. C. the demand curve shifts to the left of the original demand curve. D. the demand curve rotates counterclockwise. E. a lower price has increased the amount of the good that consumers will buy.
If the U.S. dollar depreciates against the euro, what can the Fed do to keep the dollar's exchange rate stable?
A) decrease U.S. imports by increasing tariffs B) nothing C) buy dollars in the foreign exchange market D) sell dollars in the foreign exchange market E) buy euros in the foreign exchange market
The reason that velocity increases when interest rates rise is
A. the Fed encourages banks to turn money in faster for recycling, which causes money to move faster. B. the opportunity cost of saving increases, so people hold smaller cash balances. C. home mortgage payments increase, so people write larger checks that reduces their checking account balances. D. the opportunity cost of holding money increases, so average money balances decrease.
A perfectly competitive firm is breaking even. In the short run it should ________. In the long run it should ________.
A. shut down; exit the industry B. produce where MC = MR; keep the same production level C. shut down; expand D. produce where MC = MR; leave the industry