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

Author Question: Inflation reduces the velocity of money because people reduce their money holdings. Is the previous ... (Read 77 times)

jhjkgdfhk

  • Hero Member
  • *****
  • Posts: 569
on: Jun 29, 2018
Inflation reduces the velocity of money because people reduce their money holdings. Is the previous statement correct or incorrect? Explain your answer.
 
  What will be an ideal response?

Question 2

The opportunity cost of the financial resources used to finance the purchase of capital is
 
  A) the price of the capital goods purchased.
  B) the real interest rate.
  C) the quantity of investment demanded.
  D) the supply of investment.
  E) capital investment.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

peter

  • Sr. Member
  • ****
  • Posts: 330
Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is incorrect. As the inflation rate rises, people reduce their money holdings by spending money more rapidly. As a result, the velocity rises rather than falls.

Answer to Question 2

B


jhjkgdfhk

  • Member
  • Posts: 569
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

shewald78

  • Member
  • Posts: 340
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Old people Old people
In 2006 an Iraqi tribunal convicted Saddam Hussein of murdering his own people and sentenced him to In 2006 an Iraqi tribunal convicted Saddam Hussein of murdering his own people and sentenced him to
In the 1800s, most people were poor, and formal education beyond the first several grades was a ... In the 1800s, most people were poor, and formal education beyond the first several grades was a ...
Ethnographic studies of the Baka pygmies of central Cameroon, and other people who still live as ... Ethnographic studies of the Baka pygmies of central Cameroon, and other people who still live as ...
Poverty rates have declined in the last 50 years, and the biggest decline has been for people 65 and ... Poverty rates have declined in the last 50 years, and the biggest decline has been for people 65 and ...
People with Huntington disease develop problems with neuromuscular control and gradually lose the us People with Huntington disease develop problems with neuromuscular control and gradually lose the us
Video: Fetal Development of the Cardiovascular System

For a complete list of videos, visit our video library