The amount of money you should hold depends negatively on the interest rate.
Answer the following statement true (T) or false (F)
True
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If you liquidate $3,000 of your mutual fund and transfer the funds to your checking account, then initially, M1 will ________ and M2 will ________
A) increase; decrease B) increase; not change C) not change; not change D) not change; decrease
Which of the following is an example of a nudge?
A. Income is redistributed through tax and spending programs. B. An employee must check a box to opt out of a retirement savings program. C. A farmer's market raises prices because a storm destroyed crops. D. Government taxes cigarettes.
Government-provided unemployment insurance is an example of
A. a discretionary fiscal stabilizer. B. a monetary stabilizer. C. an automatic monetary stabilizer. D. an automatic fiscal stabilizer.
If the interest rate is 15%, what is the future of value of $10,000 two years from now?
A. $13,225 B. $225 C. $13,000 D. $7,576