Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 25, Problem 4.2P
To determine

Reason for there is a negative relationship between the amount of money that the people should hold and the interest rate.

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As a lender/depositor, how would you compare time to demand deposits?     Demand deposits are more liquid, but time deposits pay a higher interest rate     Demand deposits are more liquid, but time deposits pay a lower interest rate     Demand deposits are less liquid, but time deposits pay a higher interest rate     Demand deposits are less liquid, but time deposits pay a lower interest rate
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