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Author Question: Why is the demand for real money balances downward sloping? A) because the opportunity cost of ... (Read 16 times)

kshipps

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on: Jun 30, 2018
Why is the demand for real money balances downward sloping?
 
  A) because the opportunity cost of holding money decreases as interest rates decrease
  B) because when the interest rate falls the quantity of money demanded increases
  C) because lower interest rates encourage firms and households to increase their money holdings
  D) all of the above
  E) none of the above

Question 2

Money is ________.
 
  A) an asset
  B) a unit of measure
  C) a tool
  D) all of the above
  E) none of the above


ntsoane kedibone

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

D

Answer to Question 2

D


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kshipps

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Reply #2 on: Jun 30, 2018
Thank you :)


ntsoane kedibone

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Reply #3 on: Jun 30, 2018
Happy to help you


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