If the interest rate is higher than normal, people are more likely to hold
a) bonds instead of money because the opportunity cost of money is high
b) bonds instead of money because as the interest rate starts to rise, the value of the bonds will increase
c) money instead of bonds because the brokerage fees and other costs of buying bonds are high when the interest rate is low
d) money instead of bonds because there is a speculative motive for holding a larger amount of money
Answer: a) bonds instead of money because the opportunity cost of money is high
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A) 5%. B) 10%. C) 20%. D) 25%.
Both successful market-processes ?and central planning rely on self-interested behavior.
Answer the following statement true (T) or false (F)
Vertical integration can sometimes be used to
a. Avoid paying higher taxes b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the manufacturer's belief of the likely success of his product d. All of the above
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