Homework Answers
Here option (D) is the correct answer
The opportunity cost of holding money is equals to interest rate forgone on assets. If you don't keep cash in your bank account you don't get any interest rate as earning. Therefore it's the income foregone.
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At a minimum, the opportunity cost of holding money is equal to Multiple Choice deflation which...
Other things equal, an excessive increase in the money supply will Multiple Choice have no impact...
Other things equal, an excessive increase in the money supply will Multiple Choice have no impact on the purchasing power of the dollar. О decrease prices increase the purchasing power of each dollar. increase prices.
The money demand curve is: O Upward sloping because the opportunity cost of holding money rises...
The money demand curve is: O Upward sloping because the opportunity cost of holding money rises with the interest rate. O Downward sloping because the opportunity cost of holding money is inversely related to the interest rate. Downward sloping because the opportunity cost of holding money rises as the interest rate falls. O Downward sloping because the opportunity cost of holding money rises as the interest rate rises.
What is the opportunity cost of holding money? QUESTION 6 According to the quantity theory of...
What is the opportunity cost of holding money?
QUESTION 6 According to the quantity theory of money, if the growth rate of money supply increases by 2 percentage points inflation increases by 2 percentage points and real interest rates increase by 2 percentage points inflation increases by 2 percentage points and nominal interest rates increase by 2 percentage points inflation increases by 1 percentage points and nominal interest rates increase by 1 percentage points inflation increases by 1 percentage points...
When the interest rate falls: people desire higher money balances as the opportunity cost of holding...
When the interest rate falls: people desire higher money balances as the opportunity cost of holding money decreases. people desire lower money balances as the opportunity cost of holding money decreases. people desire higher money balances as the opportunity cost of holding money increases. people desire lower money balances as the opportunity cost of holding money increases.
5. The motives for holding money Aa Aa Match the correct motive for holding money to...
5. The motives for holding money Aa Aa Match the correct motive for holding money to the following definitions. Motive Definition The stock of money people hold to pay everyday predictable expenses Transactions demand for money The stock of money people hold to take advantage of future changes in Speculative demand for money the price of non-money financial assets The stock of money people hold to pay unpredictable expenses Precautionary demand for moey Identify the motive for holding money in...
Disinflation is the term for a period during which overall inflation rates are: Multiple Choice positive...
Disinflation is the term for a period during which overall inflation rates are: Multiple Choice positive and falling. positive and increasing. zero. negative. If inflation was zero percent, nominal interest rates would be: Multiple Choice equal to real interest rate. larger than real interest. at the optimal rate. smaller than real interest. The net result of deflation is to: Multiple Choice reduce the level of aggregate supply in the economy. increase the level of aggregate demand in the economy. reduce...
(Spring 2015 Prelim 2) Which of the following argument is correct? (a) The opportunity cost of...
(Spring 2015 Prelim 2) Which of the following argument is correct? (a) The opportunity cost of holding money increases as the holding return on bonds fall. (b) The price of bonds and interest rate are positively related. (c) Speculative motive of holding bonds refers to the investors' motivation to hold bond when interest rate are high, because they can earn higher interest rate on the bond. (d) Change in real income will shift the money demand curve to the right....
The interest paid on which type of loan is not tax deductible? Multiple Choice Home equity loan interest for home impr...
The interest paid on which type of loan is not tax deductible? Multiple Choice Home equity loan interest for home improvements Credit card interest Mortgage interest to buy a home Mortgage interest to build a home Investment interest up to the amount of investment income oan Martin expects interest rates to decline over the next few months. To achieve her long-term financial goals, she will trade off liquidity for a higher return by using a: Multiple Choice regular savings account....
no need to explain. just give me the answers please 18) The choice to hold money...
no need to explain. just give me the answers please
18) The choice to hold money in the form of cash A) Has no opportunity cost. B) Results in forgone interest. C) Results in increased interest income. D) Results in greater outstanding debt. opportunity cost of holding money in the form of cash to 19) Which of the following causes the opportunity cost of holding money decrease? A) Lower interest rates. B) Higher short-term yields. C) Higher reserve requirement. D)...
Which of the following statements is correct? Multiple Choice If purchasing the same goods today as...
Which of the following statements is correct? Multiple Choice If purchasing the same goods today as one year ago requires less money, the money supply likely decreased. If purchasing the same goods today as one year ago requires less money, the money supply likely increased. If you can buy the same goods this year as you bought last year with less money there must have been inflation. If purchasing the same goods today that were purchased one year ago requires...
Other things equal, an excessive increase in the money supply will Multiple Choice have no impact on the purchasing power of the dollar. О decrease prices increase the purchasing power of each dollar. increase prices.
The money demand curve is: O Upward sloping because the opportunity cost of holding money rises with the interest rate. O Downward sloping because the opportunity cost of holding money is inversely related to the interest rate. Downward sloping because the opportunity cost of holding money rises as the interest rate falls. O Downward sloping because the opportunity cost of holding money rises as the interest rate rises.
What is the opportunity cost of holding money?
QUESTION 6 According to the quantity theory of money, if the growth rate of money supply increases by 2 percentage points inflation increases by 2 percentage points and real interest rates increase by 2 percentage points inflation increases by 2 percentage points and nominal interest rates increase by 2 percentage points inflation increases by 1 percentage points and nominal interest rates increase by 1 percentage points inflation increases by 1 percentage points...
5. The motives for holding money Aa Aa Match the correct motive for holding money to the following definitions. Motive Definition The stock of money people hold to pay everyday predictable expenses Transactions demand for money The stock of money people hold to take advantage of future changes in Speculative demand for money the price of non-money financial assets The stock of money people hold to pay unpredictable expenses Precautionary demand for moey Identify the motive for holding money in...
(Spring 2015 Prelim 2) Which of the following argument is correct? (a) The opportunity cost of holding money increases as the holding return on bonds fall. (b) The price of bonds and interest rate are positively related. (c) Speculative motive of holding bonds refers to the investors' motivation to hold bond when interest rate are high, because they can earn higher interest rate on the bond. (d) Change in real income will shift the money demand curve to the right....
no need to explain. just give me the answers please
18) The choice to hold money in the form of cash A) Has no opportunity cost. B) Results in forgone interest. C) Results in increased interest income. D) Results in greater outstanding debt. opportunity cost of holding money in the form of cash to 19) Which of the following causes the opportunity cost of holding money decrease? A) Lower interest rates. B) Higher short-term yields. C) Higher reserve requirement. D)...
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