Money held for contingencies reflects the _______ demand for money.

A) speculative
B) exchange
C) transactions
D) precautionary


Ans: D) precautionary

Economics

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Income inequality increases as the Gini coefficient approaches 1

Indicate whether the statement is true or false

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How do payments on a fixed-payment loan differ from a coupon bond?

What will be an ideal response?

Economics

At age 40, Joe is considering quitting his job and going back for a college degree. He needs two more years full-time. Tuition is $10,000 per year. He earns $30,000 per year. A college degree would raise his annual income by $10,000 per year

He will retire at age 70. Which of the following makes it more likely that Joe will decide to go back to college full-time? A) The rate of interest increases. B) The rate of interest decreases. C) The government enacts mandatory retirement at age 60. D) Tuition increases.

Economics

The marginal value of a commodity to a consumer

a. increases as more of the good is consumed. b. is exactly equal to price for all units purchased by the consumer. c. is measured by the height of the individual consumer's demand curve. d. is equal to the area above the price and below the individual consumer's demand curve.

Economics