Increasing prices tend to decrease interest rates and increase investment spending
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is a reason people choose to hold more cash?
a) Interest rates paid on savings and checking accounts at the bank rise dramatically. b) Consumers have more faith in the stability and safety of the financial system. c) Interest rates paid on savings and checking accounts at the bank are near zero. d) Holding cash becomes less convenient.
Read "Teen Pregnancy Prevention: Welfare Reform's Missing Component," by Isabel Sawhill of the Brookings Institution
Is this an example of positive economics, normative economics, or a combination of both positive and normative economics? Briefly state the positive and/or normative economic arguments that are embedded in this article.