What are the two reasons that people want to hold money? In other words, what are the two types of demand for money?
What will be an ideal response?
People want to hold money for transactions purposes and as a form of liquid assets. Thus, economists talk about a transactions demand for money and an asset demand for money.
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Refer to Table 9-7
a. Which country has an absolute advantage in the production of handbags and jackets? b. Which country has a comparative advantage in the production of handbags? c. Which country has a comparative advantage in the production of jackets?
The confidence interval for a single coefficient in a multiple regression
A) makes little sense because the population parameter is unknown. B) should not be computed because there are other coefficients present in the model. C) contains information from a large number of hypothesis tests. D) should only be calculated if the regression R2 is identical to the adjusted R2.
Which of the following about economic freedom is true?
a. In 1960, the per capita income levels of Hong Kong and Singapore were greater than those of the United States and Canada. b. The economies of Hong Kong and Singapore have grown slowly in recent decades. c. Economic freedom ratings indicate that both Hong Kong and Singapore rank among the world's freest economies. d. Economic freedom ratings indicate that Nigeria and Venezuela rank among the world's freest economies.
Assume that the Paris First National Bank currently has deposits of $20 million. If the current required reserve ratio is raised from 20 percent to 40 percent, then:
A. Paris First National Bank must increase its required reserves from $4 million to $8 million. B. required reserves will decrease from $16 million to $12 million. C. excess reserves will automatically increase by $20 million. D. Paris First National Bank must close out 4 million in loans.