People are likely to want to hold more money if the interest rate
a. increases, making the opportunity cost of holding money rise.
b. increases, making the opportunity cost of holding money fall.
c. decreases, making the opportunity cost of holding money rise.
d. decreases, making the opportunity cost of holding money fall.
d
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The ground rules, customs, and conventions that govern the behavior of market participants are often referred to as institutions
Indicate whether the statement is true or false
In the above figure, the economy is initially at point B. If the government decreases transfer payments, there is
A) a movement to point C. B) a movement to point A. C) a shift to AD2. D) a shift to AD1.
What are the three ingredients of a financial and banking crisis?
What will be an ideal response?
Which statement best describes a capitalist economy?
a. Government policies determine the production and the allocation of goods and services b. The role of individual self-interest is relatively unimportant because government makes most of the economic decisions c. Government policies determine the production, but not the allocation, of goods and services d. Society determines production and the allocation of goods and services only through markets