This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The opportunity cost of holding money is measured by A) the interest yield that could have been ... (Read 27 times)

chads108

  • Hero Member
  • *****
  • Posts: 507
on: Jun 30, 2018
The opportunity cost of holding money is measured by
 
  A) the interest yield that could have been earned by holding some other asset.
  B) the liquidity of interest-bearing assets.
  C) the price of government bonds.
  D) a dollar.

Question 2

Why do policymakers sometimes use policies to limit growth?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jennafosdick

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

Policymakers sometimes use policies to limit growth because factors such as irrational optimism about the economy lead to unsustainable expansion. Left alone, unsustainable expansions can subsequently lead to very severe downturns because irrational optimism can implode suddenly and severely due to multiplier effects. Contractionary policy attempts to reduce this risk of a sudden and extreme contraction by putting gradual left ward pressure on the labor demand curve when policymakers think it is moving too quickly to the right.


chads108

  • Member
  • Posts: 507
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

vickybb89

  • Member
  • Posts: 347
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

First-Pass Effect: Oral Drug Is Metabolized to an Inactive Form Before It Has an Opportunity to ... First-Pass Effect: Oral Drug Is Metabolized to an Inactive Form Before It Has an Opportunity to ...
Passive touch by holding the head lightly. Passive touch by holding the head lightly.
The reaction of a PLP-dependent decarboxylation to yield serotonin The reaction of a PLP-dependent decarboxylation to yield serotonin
Cost of Laptops Cost of Laptops
A $50 000 bond bearing interest at 5.5% payable semi-annually is redeemable at par on August ... A $50 000 bond bearing interest at 5.5% payable semi-annually is redeemable at par on August ...
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ... A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...
Video: Role of complement proteins

For a complete list of videos, visit our video library