MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 16, Problem 2SQ
To determine
The money kept for response to interest rates.
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Students have asked these similar questions
When a bank makes a loan what happens to the amount of money in deposits it holds and to the quantity of money in the economy?
A. Bank deposits decrease, the quantity of money increases.
B. Bank deposits do not change, the quantity of money does not change.
C. Bank deposits decrease, the quantity of money does not change.
D. Bank deposits do not change, the quantity of money increases.
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Which statement is not correct?
A. Money is a legal tender since the law requires a lender to accept money in the repayment of debts.
B. Money as a store of value can be held and exchanged later for goods and services.
C. In its role as a medium of exchange, money makes exchanges easier by reducing transactions costs.
D. The demand for money represents the idea that there is a positive relationship between the interest rate and the quantity of money demanded.
E. none of the above
The opportunity cost of holding money
A. increases when the interest rate decreases, so people desire to hold less of it.
B. decreases when the interest rate decreases, so people desire to hold less of it.
C. increases when the interest rate decreases, so people desire to hold more of it.
D. decreases when the interest rate decreases, so people desire to hold more of it.
Chapter 16 Solutions
MACROECONOMICS FOR TODAY
Ch. 16.3 - Prob. 1.1YTECh. 16.3 - Prob. 2.1YTECh. 16.3 - Prob. 2.2YTECh. 16.A - Prob. 1SQPCh. 16.A - Prob. 2SQPCh. 16.A - Prob. 3SQPCh. 16.A - Prob. 4SQPCh. 16.A - Prob. 1SQCh. 16.A - Prob. 2SQCh. 16.A - Prob. 3SQ
Ch. 16.A - Prob. 4SQCh. 16.A - Prob. 5SQCh. 16.A - Prob. 6SQCh. 16.A - Prob. 7SQCh. 16.A - Prob. 8SQCh. 16.A - Prob. 9SQCh. 16.A - Prob. 10SQCh. 16.A - Prob. 11SQCh. 16.A - Prob. 12SQCh. 16.A - Prob. 13SQCh. 16.A - Prob. 14SQCh. 16.A - Prob. 15SQCh. 16 - Prob. 1SQPCh. 16 - Prob. 2SQPCh. 16 - Prob. 3SQPCh. 16 - Prob. 4SQPCh. 16 - Prob. 5SQPCh. 16 - Prob. 6SQPCh. 16 - Prob. 7SQPCh. 16 - Prob. 8SQPCh. 16 - Prob. 9SQPCh. 16 - Prob. 10SQPCh. 16 - Prob. 11SQPCh. 16 - Prob. 12SQPCh. 16 - Prob. 1SQCh. 16 - Prob. 2SQCh. 16 - Prob. 3SQCh. 16 - Prob. 4SQCh. 16 - Prob. 5SQCh. 16 - Prob. 6SQCh. 16 - Prob. 7SQCh. 16 - Prob. 8SQCh. 16 - Prob. 9SQCh. 16 - Prob. 10SQCh. 16 - Prob. 11SQCh. 16 - Prob. 12SQCh. 16 - Prob. 13SQCh. 16 - Prob. 14SQCh. 16 - Prob. 15SQCh. 16 - Prob. 16SQCh. 16 - Prob. 17SQCh. 16 - Prob. 18SQCh. 16 - Prob. 19SQCh. 16 - Prob. 20SQ
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- When the interest rate falls , other things remaining the same, what change occurs in the market for money? The opportunity cost of holding money _______ and _______. A. rises ; the demand for money decreases B. rises ; the quantity of money demanded decreases C. falls ; the quantity of money demanded increases D. falls ; the demand for money increasesarrow_forwardIf the bank rate is 1 percent, what would be the respective deposit rate? a. 0.5 percent cross out b. 1.25 percent cross out c. 0.25 percent cross out d. 1.5 percent cross out e. 0.75 percent cross out Show Transcribed Text plz help me with this question, thx.arrow_forwardWhich of the following statements about money that is correct? A. Inflation brings a rising value of money. B. A work of art is an example of money because it can act as a store of value. C. Money is a completely stable store of value. D. Without a medium of exchange, goods and services must be exchanged directly for other goods and services.arrow_forward
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