The opportunity cost of holding money is measured by the rate of interest
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following would NOT cause the demand curve for bonds to shift?
A) a change in wealth B) a change in the price of bonds C) a change in the liquidity of bonds D) a change in expected inflation
Wants
A) is another term for needs. B) refer to services while needs refer to goods. C) is the term used by economists instead of needs because needs are not objectively definable. D) are used by economists and refer to the same thing as needs when used by psychologists.
If the Fed increased the discount rate,
a. banks would make more loans b. the money supply would increase c. firms would be more likely to seek out loans d. the required reserve ratio would increase e. banks would make fewer loans
Intermediate goods are not counted as part of gross domestic product.
Answer the following statement true (T) or false (F)