If interest rates decrease to a very low level, people will most likely hold
A. more money in savings accounts and more cash.
B. less money in savings accounts and more cash.
C. more money in savings accounts and less cash.
D. less money in savings accounts and less cash.
Answer: B
You might also like to view...
A ad valorem sales tax can be thought of as
A) a proportional tax. B) not part of the tax base. C) a revenue source for county governments only. D) none of the above.
According to the aggregate demand and aggregate supply model, in the long run a decrease in the money supply leads to
a. decreases in both the price level and real GDP. b. an increase in real GDP and an increase in the price level. c. a decrease in the price level but does not change real GDP. d. an increase in the price level but does not change real GDP.
Trade between two nations can benefit both if each specializes in the good that it can produce at a lower opportunity cost.
a. true b. false
In the Spence education signaling model, what is the social value of education?
a. Employees improve their ability to perform on the job. b. Employers can use education as a screen to match talented employees with high-skill jobs. c. Employers can save the costs of on-the-job training, which is less efficient than a general education. d. It allows low-ability employees to apply for high-salary jobs.