An increase in the demand for Treasury bills will
A) eventually cause households to hold less money.
B) decrease the price of Treasury bills.
C) increase the opportunity cost of holding money vs. Treasury bills.
D) decrease the interest rate on Treasury bills.
D
Economics
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Calculate the government purchases multiplier if the marginal propensity to consume equals 0.8, the tax rate is 0.1, and the marginal propensity to import equals 0.2
A) 2.1 B) 1.9 C) 1.7 D) 1.4
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Checkable deposits are a liability on a bank's balance sheet.
Answer the following statement true (T) or false (F)
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