1)The opportunity cost of holding money is
the reduction in purchasing power brought on by deflation.
the liquidity foregone from not holding some other asset.
the alternative interest income foregone from not holding someother asset.
All of the above
2) What does exchange rate overshooting describe?
Group of answer choices
The exchange rate changes by more in the long run than in theshort run.
The exchange rate changes by more than the interest rate in thelong run.
The exchange rate changes in the short run by more than in thelong run.
The exchange rate increases by more in the long run than theprice level.
.
1)The opportunity cost of holding money is the reduction in purchasing power brought on by deflation. the liquidity fore
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