Crises that occasionally hit financial markets will increase the demand for money since:
A. the risk of holding money relative to other financial assets decreases.
B. the return on financial assets increases.
C. the return on money increases.
D. there is no risk with holding money.
Answer: A
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Because the amount of labor a firm employs can be changed, the cost of labor is known as
A) minimum cost. B) variable cost. C) maximum cost. D) fixed cost. E) an unavoidable cost.
Between 1990 and 2014, which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?
A) Japan B) Canada C) the United States D) Germany
One of the principal defects of using a commodity as money is that its worth as a:
A. commodity may exceed its worth as money, causing it to cease functioning as a medium of exchange. B. medium of exchange may exceed its worth as a store of value, causing it to cease being useful as money. C. medium of exchange may exceed its worth as a standard of account, causing it to cease being useful as money. D. unit of account may exceed its worth as a store of value, causing it to cease being useful as money.
Which of the following is NOT consistent with the law of diminishing marginal utility?
A. A symphony has free throat lozenges in their lobby. B. A student's enjoyment of a movie increases the more she watches it. C. A student selects to eat at an all-you-can-eat restaurant rather than at a restaurant that charges for refills. D. Newspaper vending machines are not as secure as soft drink machines.