If you kept your money under your mattress rather than keeping it in a savings account at your local bank,
A. you would not incur an opportunity cost.
B. the opportunity cost of such an action would be the forgone interest of not putting the money in a savings account.
C. the opportunity cost of such an action would be the gas money it took to drive to the bank.
D. None of the choices are true.
B. the opportunity cost of such an action would be the forgone interest of not putting the
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In the above figure, if initial equilibrium is at point A and if there is an unanticipated increase in aggregate demand from AD1 to AD2, then
A) in the short run real output will remain at Y1. B) in the short run real output will increase above Y1, but in the long run it will return to Y1. C) in the long run real output will increase above Y1. D) real output will increase above Y1 in both the short run and in the long run.
The least liquid of the following assets is
a. cash in the hands of the public b. time deposits c. savings accounts d. travelers' checks e. demand deposits