The reason that people may not want to hold money is
A. the precautionary demand for money and the risk of being robbed.
B. the transactions demand makes it unnecessary.
C. the opportunity cost.
D. due to the direct relationship between money demand and the interest rate.
Answer: C
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A slowdown in labor productivity causes a slowdown in economic growth when all else is held constant
Indicate whether the statement is true or false
Which of the following would likely take the longest time to enact?
A) Federal government fiscal policy that strives for a balanced budget B) The Fed's lowering of the discount rate C) The Fed's raising of the discount rate D) The Fed's engagement in open market operations
Positive economic analysis is said to be
A) true. B) right. C) value-laden. D) objective.
A market in which a single firm can produce, at a lower cost than multiple firms, the entire quantity of output demanded is called:
A. diseconomies of scale. B. government intervention. C. a natural monopoly. D. price gouging.