According to this Application, which of the following is a reason for holding cash?
A) for convenience
B) fear of financial catastrophe
C) to make a purchase when you cannot use a debit or credit card
D) all of the above
D
You might also like to view...
How does a change in taxes primarily affect aggregate demand? a. A tax change alters exports and net exports
b. A tax change alters investment by an equal and opposite amount. c. A tax change alters disposable income and consumption spending. d. A tax change alters government purchases by an equal amount.
The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own, is called
a. the Pigovian theorem. b. a corrective tax. c. the externality theorem. d. the Coase theorem.
In the 1980s, one often-heard explanation for the low levels of net investment in the US and UK was that
a) developed economies had no incentives for acquiring new capital b) investment opportunities were limited because the already large capital stock was inducing a low marginal product of capital c) depreciation and obsolescence were so rapid that firms could barely keep up with demands for replacing existing capital d) stock market participants sought short-term capital gains from market appreciations rather than long term dividends from investment e) rapid price inflation was creating excessive investor uncertainty
The expected revenues in auctions with risk-averse bidders with independent private values will be:
A. English = Second price = First price = Dutch. B. English > Second price > or < First price = Dutch. C. English > Second price > First price = Dutch. D. First price = Dutch > English = Second price.