jaymartijay3338 jaymartijay3338
  • 03-01-2020
  • Business
contestada

At a ________ interest rate people would hold more funds in cash since the opportunity cost of having cash is low..

Respuesta :

Maysara Maysara
  • 04-01-2020

Answer:

low

Explanation:

The opportunity cost of having cash is the amount that we can earn from the interest of the deposited funds. If the interest rate is low, the earning from depositing money will not enough to buy goods that more expensive in the future due to inflation. Thus, it is better to hold cash to buy things at present when the prices have not gone up yet.

Answer Link

Otras preguntas

Till his straining rump among the flowerbeds Bends low, comes up twenty years away Stooping in rhythm through potato drills Where he was digging. Read the haik
What's the answer? :)
What impact did british goods have on the american economy?
What part of speech is the word in, in the following sentence? there is no more milk in the carton for my cereal?
Emilio was involved in an accident that left him unsteady and uncoordinated. which energy pathway would be best for him to work?
Please help, if so thanks (:
What has not happened to hungary since 1990?
What is the meaning of denunciation as used in this sentence?
What happened as a result of the Japanese attack on Pearl Harbor? The United States negotiated with Japan in an effort to avoid war. The United States imposed
What is the answer?????