Effects of less liquid assets on interest rate

When households become more willing to hold less liquid assets, the: (w) interest rate rises. (x) present value of future income falls. (y) interest rate falls. (z) stock market will crash.

How can I solve my Economics problem? Please suggest me the correct answer.

View Complete Question

Related Questions in Microeconomics

Q : Wages-Portion of costs Assume that a

Assume that a firm with market power in output market wishes to grow up and that hiring more workers needs it to increase wages 8% for all the workers. Output prices will most likely: (1) Increase 8% to cover the wage raise. (2) Increase less than 8% as wages are only

Q : Excess in balance of trade When there

When there is an excess in the balance of trade? Answer: When export > import (that is, when export is greater than import).

Q : Calculating economic profit for first

Assume that the banker is employed at an annual salary of $60,000. She as well has financial assets worth of $40,000 which earns $1,500 per year in interest. She too owns a commercial building that she rents out for $20,000 per year. Now assume that she quits this job

Q : Major disadvantage of operating a

One of the main disadvantages of operating a corporation in relative to operating a sole partnership or proprietorship is that corporations tend to: (i) Offer just limited legal liability to their stockholders. (ii) Utilize specialized management pers

Q : Explain the term PHP Explain the term

Explain the term PHP?

Q : LEAST Liquidity in market The LEAST

The LEAST liquid of the given assets is: (1) a corporation's capital. (2) savings accounts. (3) cash. (4) U.S. savings bonds. (5) checking accounts. Hey friends please give your opinion for the problem of E

Q : Revenue expenditure Why payment of

Why payment of interest is treated as revenue expenditure? Answer: Since it does not cause any decrease in the liability of government.

Q : Utility Analysis problem The marginal

The marginal utility curve can much loosely be translated into the demand curve by: (1) Measuring its declining part in dollars. (2) Transforming utils into the prices. (3) Horizontally summing up everyone’s MUs at each and every price. (4) Setting MUa/Pa = MUb/

Q : Equilibrium price of a quantity I have

I have a problem in economics on Equilibrium price of a quantity. Please help me in the following question. The equilibrium price is a price at which the quantity: (1) Bought equivalents the quantity sold. (2) Demanded equivalents the quantity supplie

Q : Perfectly price elasticity of supply

The supply of textile employees in China is possibly most like the perfectly price elastic supply curve within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D.

Discover Q & A

Leading Solution Library

Avail More Than 1438858 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1925800
Asked

3,689

Active Tutors

1438858

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment