When people are deciding whether to deposit money in a bank:
A. everyone will respond exactly the same to any given interest rate.
B. some people will require a higher interest rate to deposit the same amount of money.
C. people don’t accurately account for the risk of losing savings.
D. they will deposit the same amount in response to any given interest rate.
B. some people will require a higher interest rate to deposit the same amount of money.
You might also like to view...
When an average total cost pricing rule is enforced, average total cost equals ________
A) marginal revenue B) total revenue C) price D) average total cost
________ in the foreign interest rate causes the demand for domestic assets to shift to the left and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
Justification of a government program based on the jobs that it will create rather than the merits of the program itself is known as the: a. law of unintended consequences. b. invisible hand
c. crowding out effect. d. broken window fallacy.
______ creates inefficiency in a labor market by preventing firms from hiring employees whose marginal revenue product is above the market wage
a. Efficiency wage b. Labor union c. Labor shortage d. Discrimination