1. Individuals who make more trips to the bank in a given period of time hold ____ money on average and forego ____ interest.
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2. Which of the following will reduce the number of days between visits to the bank for the average household?
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B. |
C. |
D. |
3. Households decide to increase their marginal propensity to consume and spend more on any given day. This will lead to a(n) _____ in foregone interest and a(n) ____in the number of days between visits to the bank.
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B. |
C. |
D. |
4. An increase in the interest rate will _____ the cost of holding money and lead households to ____ the number of days between visits to the bank.
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B. |
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D. |