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

Author Question: Which of the following explains why the demand for money curve has an inverse relationship between ... (Read 47 times)

hbsimmons88

  • Hero Member
  • *****
  • Posts: 526
on: Jun 30, 2018
Which of the following explains why the demand for money curve has an inverse relationship between the interest rates and the quantity of money demanded?
 a. As the interest rate rises, the opportunity cost of holding money rises, and people respond by converting cash or checking account balances into interest-bearing financial investments.
  b. As the interest rate rises, people find it advantageous to borrow money, which increases the quantity of money demanded.
  c. As the interest rate falls, the opportunity cost of holding money rises, and people respond by converting cash or checking account balances into interest-bearing financial investments.
  d. As the interest rate rises, the demand for money curve shifts outward to the right.

Question 2

Which of the following is a leading business cycle indicator?
 a. The unemployment rate.
  b. The volume of outstanding commercial loans.
  c. New building permits.
  d. Personal income.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

SeanoH09

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

c


hbsimmons88

  • Member
  • Posts: 526
Reply 2 on: Jun 30, 2018
Excellent

okolip

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Relationship of the spindle-assembly checkpoint (SAC) with the cell-cycle machinery Relationship of the spindle-assembly checkpoint (SAC) with the cell-cycle machinery
Four Arch Curve Four Arch Curve
Oxygen dissociation curve Oxygen dissociation curve
Relationship Between Physical Activity and Improved Health Benefits Relationship Between Physical Activity and Improved Health Benefits
Frequency distribution curve: interpatient variability in drug response. Frequency distribution curve: interpatient variability in drug response.
The relationship between allelic frequency and genotypic frequency in a population that is in Hardy- The relationship between allelic frequency and genotypic frequency in a population that is in Hardy-
Video: Male Reproductive System - Testosterone

For a complete list of videos, visit our video library