Bonds are a form of debt

The demand for money that arises because holding money over short periods is less risky than holding stocks or bonds is called the

A) transactions demand for money. B) opportunity cost demand for money. C) liquidity demand for money. D) speculative demand for money.

Which of the following is FALSE?

A) Economies of scale may be internal, external, or both. B) With internal economies of scale, the gains from trade include a wider selection of consumer choices and lower prices. C) With external economies of scale, the gains from trade are less certain since, in theory, they can lock in production in a less efficient country and prevent the development of production in a more efficient country. D) Internal economies of scale lead firms to regionally concentrate their industry.