In a world with money and bonds only
A) it is not risky to hold money.
B) it is risky to hold money.
C) risk is an important factor in the demand for money.
D) there is no relationship between risk and holding money.
E) assets become meaningless.
B
Economics
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During recessions, the value of collateral decreases and corporate profits decrease, so firms do not have cash to finance new investment projects. Therefore, credit rationing depends on the state of the economy. This situation is known as the
A) risk acceptance cost. B) lender's dilemma. C) default premium. D) financial accelerator.
Economics
A decrease in disposable income causes a shift in the consumption function.
Answer the following statement true (T) or false (F)
Economics