The opportunity cost of holding money is that you
A) forego interest on an alternative asset.
B) must make more trips to the bank to manage the money.
C) have trouble balancing your check book.
D) pay a higher tax rate.
E) run a greater risk of being robbed.
A
You might also like to view...
What is the velocity of money?
A) The rate at which GDP increases in a year B) The speed of capital accumulation C) The rate at which money circulates through an economy D) The rate at which the Federal Reserve increases or decreases the money supply E) The rate at which the aggregate price level increases
The firm can calculate all points on its total cost curve if it knows
a. its production function. b. the prices of inputs and of output. c. its average cost at its optimal output level. d. the prices of inputs and its production function.