Interest rate falls by liquidity

When households shift by an emphasis on cash into their portfolios and more stocks and bonds since they have become more willing to hold less liquid assets, in that case the: (w) interest rate rises. (x) present value of future income falls. (y) interest rate falls. (z) stock market will crash.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Monopsony Power and the Demand for Labor

Can someone help me in finding out the right answer from the given options. The labor monopsonist will hire labor up to a point where marginal: (1) Revenue product of the labor equivalents the wage. (2) Resource cost of labor equivalents the wage. (3) Revenue product

Q : Transferred Funds in Financial Markets

Financial markets are markets in that funds are transferred from: (w) financial investors or institutions which have an excess of available funds to people or firms which have a shortage. (x) people who have a shortage of obtainable funds to people wh

Q : Average Variable Cost-Average Total

Describe the relationship among Average Variable Cost (AVC) Average, Total Cost (ATC) and marginal Cost (MC)? Answer: A) If MC

Q : Economic profit of purely-competitive

This purely-competitive lumber mill experiences on the average day is an: (w) economic profit of about $340. (x) economic loss of roughly $150. (y) accounting profit of less than $300. (z) accounting loss of more than $100.

Q : Define revenue deficit Revenue deficit:

Revenue deficit: Whenever revenue expenses are greater than revenue receipts, it is termed as revenue deficit.

Q : Meaning of Caveat emptor I have a

I have a problem in economics on Meaning of Caveat emptor. Please help me in the following question. Caveat emptor signifies: (i) Let the seller beware! (ii) Everything else held steady. (iii) Let things modify if they should. (iv) Charge whatever the market will allo

Q : Marginal revenue product problem

Siberian Software vends custom programs to the multinational corporations. Its programs are coded in a remote region. In equilibrium, the Siberian’s programmers produce a marginal revenue product equivalent to around: (i) $21 per hour. (ii) $25 per hour. (iii) $

Discover Q & A

Leading Solution Library

Avail More Than 1425416 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1928045
Asked

3,689

Active Tutors

1425416

Questions
Answered

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

Submit Assignment