Holding money for the speculative motive is holding cash for unexpected events.
Answer the following statement true (T) or false (F)
False
The speculative motive for holding cash to avoid holding financial assets whose prices are falling or may fall in the future.
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If a country is growing at an annual growth rate of 5%, what will be its GDP after 5 years?
A) 5 times the current GDP B) 1.28 times the current GDP C) 3.21 times the current GDP D) 1.8 times the current GDP
The minimum wage is an example of
A) a subsidy for low-skilled workers. B) a price floor. C) a black market. D) a price ceiling.
Suppose that prices in the United States rise relative to prices in France. We expect that (on the foreign exchange market) the demand for U.S. dollars will __________ and the supply of dollars will __________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
You won a free ticket to see the latest Star Wars movie this Friday night (which you can costlessly resell for its face value of $15). Your favorite band is also performing on Friday and is your only alternative activity. Friday is your last chance to see either the movie or the band. Tickets to see your favorite band cost $30, and on any given day, you would be willing to pay as much as $50 for a ticket. Based on this information, what is your opportunity cost of going to see the Star Wars movie on Friday?
A. $50 B. $35 C. $30 D. $0