An increase in the interest rate
A) decreases the opportunity cost of holding money.
B) increases the opportunity cost of holding money.
C) decreases the percentage yield of holding money.
D) increases the percentage yield of holding money.
Answer: B
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Which of the following characteristics is a precondition for economic growth?
i. economic freedom ii. free markets iii. active government policy to discourage saving A) ii only B) Both ii and iii C) i only D) iii only E) Both i and ii
"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run, what is TRUE if the production of ethanol increases?
A) The demand for corn will increase. B) The supply of ethanol will decrease. C) The supply of corn will increase. D) The demand for ethanol will increase.