This topic contains a solution. Click here to go to the answer

Author Question: The opportunity cost of holding money is measured by A) the interest yield that could have been ... (Read 71 times)

chads108

  • Hero Member
  • *****
  • Posts: 507
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
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
YES! Correct, THANKS for helping me on my review


  • Member
  • Posts:
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

For a complete list of videos, visit our video library