The demand for money is a downward sloping line that depicts the relationship between the price level and the opportunity cost of holding money
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Table 2-5. If the two countries specialize and trade, who should export lumber?
A) They should both be exporting lumber. B) Finland C) There is no basis for trade between the two countries. D) Estonia
Transactions costs in international financial markets are higher today than they were in the past
Indicate whether the statement is true or false
Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000, with 25 percent of jobs offering $30,000 per year, 50 percent offering $40,000 per year and 25 percent offering $50,000 per year and that in all other respects, the jobs are equally satisfying. Assume that in this market, a job offer remains open for only a short time so that continuing to search requires an applicant to reject any current job offer. Moe has just received a job offer that pays $40,000 per year. Moe should:
A. reject the offer if he is risk averse. B. only accept the offer if he is risk-neutral. C. reject the offer regardless of his preference for risk. D. accept the offer if he is risk averse.
What is the random walk theory?
What will be an ideal response?