The price of holding money balances is equal to the
A) price of bonds that could have been purchased with those money balances.
B) price of goods and services that could have been purchased with those money balances.
C) the interest rate that could have been earned had those money balances been invested in an interest-bearing alternative (e.g., a bond).
D) any of the above
C
You might also like to view...
The quantity of iPads that people plan to buy this month depends on all of the following EXCEPT the
A) price of a rival's tablet. B) price of an iPad. C) the technology used to produce an iPad. D) price of apps.
For which of the following groups has the poverty rate declined most in the United States?
a. unmarried heads of households b. married heads of households c. less-educated African-Americans d. African-Americans with high school but not college educations e. people 65 and older
Tom is a castaway who washes up on a remote island. He can kill eight birds per hour or catch ten fish per day. The natives on the island can kill ten birds per day or catch twenty fish per day. According to comparative advantage, a. Tom should kill more birds and fish less, then trade birds for fish. b. Tom should kill fewer birds and fish more, then trade fish for birds. c. Both, Tom should
kill more birds and fish less. d. Both, Tom should kill fewer birds and fish more.
The drug maker Pfizer enjoyed a monopoly of the antibiotic Lipitor because of patent rights
a. True b. False Indicate whether the statement is true or false