Which of the following is an accurate statement about the money market?
a. Long-term interest rates affect the demand for money.
b. Short-term interest rates affect the demand for money.
c. Long-term financial assets can be easily used.
d. Short-term financial assets cannot be easily used.
b. Short-term interest rates affect the demand for money.
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Since 1970, the share of income going to the richest fifth of the population in the U.S. has
a. diminished. b. grown. c. remained unchanged.
All inferior goods have upward-sloping demand curves.
Answer the following statement true (T) or false (F)
Disadvantages of decentralization are
A. intercommunity externalities. B. forgone scale economies in the provision of public goods. C. inefficient taxation. D. the lack of ability to redistribute income. E. all of these answer options are correct.
When one observes consumption and investment patterns over time, one finds that:
a. like consumption, investment is fairly stable over time. b. like consumption, investment is fairly erratic over time. c. unlike consumption, which is fairly stable over time, investment is subject to erratic fluctuations. d. unlike consumption, which is subject to erratic fluctuations, investment is fairly stable over time. e. investment is rarely affected by technological and economic factors.