If financial investors believe that the prices of bonds and other assets will fall,
A) their precautionary demand for money goes up.
B) their speculative demand for money goes up.
C) their precautionary demand for money goes down.
D) their speculative demand for money goes down.
Ans: B) their speculative demand for money goes up.
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Firms that charge a price for their output in excess of marginal cost in the short run
A) are not maximizing profits. B) cannot find buyers for their output. C) are charging a markup. D) will suffer huge losses.
Most economists believe that a corporate income tax affects the stockholders of a corporation but not its employees or customers
a. True b. False Indicate whether the statement is true or false
Suppose that college professors at public universities are unionized. If public university college professors change their minds and vote not to be unionized, the quantity of public university college professors demanded will
a. rise. The supply of workers in other similar professions will also rise. b. rise. The supply of workers in other similar professions will fall. c. fall. The supply of workers in other similar professions will rise. d. fall. The supply of workers in other similar professions will also fall.
Consumers are sovereign when
A) prices are decided by sellers. B) a few consumers exercise coercion on sellers and other consumers. C) they can prevent market failure. D) they have the freedom to decide what they wish to purchase.