It is costly to hold money because
A. deflation may reduce its purchasing power.
B. in doing so one sacrifices interest income.
C. bond prices are highly variable.
D. the velocity of money may decline.
B. in doing so one sacrifices interest income.
You might also like to view...
When the good on the vertical axis is a composite good, the slope of the budget line is equal to minus the price of the good on the horizontal axis.
Answer the following statement true (T) or false (F)
The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. What is the marginal social benefit from the 100th pound of chocolate each day?
A) $1.50 per pound B) $1.00 per pound C) $0.50 per pound D) None of the above answers is correct.
A shift in the investment demand curve can be caused by a change in the expectations of profits by businessmen
a. True b. False Indicate whether the statement is true or false
Government spending results from the provision of
a. private goods b. public goods c. merit goods d. redistribution e. all of the above