What effect does an increase in the interest rate have on the opportunity cost of holding money and on the demand for money curve?
What will be an ideal response?
An increase in the interest rate increases the opportunity cost of holding money. There is a movement upward along the demand for money curve.
Economics
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Which of the following is a derivative financial asset?
A) A mortgage B) Commercial paper C) A Treasury bill D) A financial futures contract
Economics
Which of the following would cause a decrease in the demand for film?
a. a decrease in the price of film processing b. an increase in the price of film c. an increase in income of camera users d. an increase in the price of cameras e. an increase in supply of cameras
Economics