What are three reasons people want to hold money balances?
What will be an ideal response?
There are three reasons people hold money balances. The transactions demand for money is the demand to hold money to make regular, expected expenditures. The precautionary demand is the money held to meet unplanned expenditures and emergencies. The asset demand for money is to hold money as an asset that is a store of value.
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The ability to read, write, and run calculations are examples of human capital.
Answer the following statement true (T) or false (F)
________ refers to an action that an individual with private information takes in order to convince others about his information
A) Sniping B) Signaling C) Hedging D) Speculating
A reduction in the tax rate on income from saving would
a. most directly benefit the poor in the short run. b. increase real wages over time. c. decrease the capital stock over time. d. decrease productivity over time.
Which of the following is true if a firm has indivisible inputs?
A. The long-run average cost curve is downward sloping at lower levels of output. B. The long-run fixed cost curve is downward sloping at lower levels of output. C. The long-run total cost curve is downward sloping at lower levels of output. D. The long-run marginal cost curve is downward sloping at lower levels of output.