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Author Question: What are the factors that determine the amount of money an individual desires to hold? What will ... (Read 145 times)

iveyjurea

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on: Jun 30, 2018
What are the factors that determine the amount of money an individual desires to hold?
 
  What will be an ideal response?

Question 2

Refer to the figure above. The deadweight cost of the tariff equals
 
  A) 10,000.
  B) 25,000.
  C) 50,000.
  D) cannot be calculated without further information.


hramirez205

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Three main factors: first, the expected return the asset offers compared with the returns offered by other assets; second, the riskiness of the asset's expected return; and third, the asset's liquidity.

Answer to Question 2

B


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