When interest rates are higher:
a. the opportunity cost of holding monetary assets is higher, and the quantity of money demanded, but not the demand for money, is lower.
b. the opportunity cost of holding monetary assets is higher, and the demand for money increases
c. the opportunity cost of holding monetary assets is lower, and the quantity of money demanded, but not the demand for money, is greater.
d. the opportunity cost of holding monetary assets is lower, and the demand for money increases.
a
You might also like to view...
Answer the next question on the basis of the following data. OutputTotal Cost0$24133241348454561669If the marginal cost of the seventh unit of output is $9, then the total cost of producing seven units is
A. $78. B. $84. C. $80. D. unknown.
If a proprietorship converts to a corporation form of business organization, it gives up control of day-to-day operations to the
a. bondholders b. shareholders c. owners d. management e. board of directors
Suppose a taxpayer has an income of $120,000 and a taxable income of $80,000, and pays $20,000 in taxes. If the taxpayer says she is taxed at a 25 percent tax rate, she is referring to the
A. Effective tax rate. B. Marginal tax rate. C. Nominal tax rate. D. Average tax rate.
Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. The break-even level of real disposable income is
A. 1400. B. 0. C. 6000. D. 1000.