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Author Question: As the nominal interest rate increases ________. A) it becomes more costly to hold money instead ... (Read 29 times)

BRWH

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  • Posts: 553
on: Jun 30, 2018
As the nominal interest rate increases ________.
 
  A) it becomes more costly to hold money instead of bonds
  B) the quantity of money demanded falls
  C) the opportunity cost of holding money rises
  D) all of the above
  E) none of the above

Question 2

A consumer is a borrower if
 
  A) optimum current consumption is less than current disposable income.
  B) optimum current consumption is greater than current disposable income.
  C) future disposable income is greater than current disposable income.
  D) the consumer's indifference curves are relatively steep.


Ptupou85

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

D

Answer to Question 2

B


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