Everything Else Held Constant,an Increase in Wealth Will Cause the Holdings

question 155

Multiple Choice

Everything else held constant,an increase in wealth will cause the holdings of checkable deposits to the holdings of currency to ________ and the currency ratio will ________.

• A)increase;increase
• B)increase;decrease
• C)decrease;increase
• D)decrease;decrease

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Definitions:

Presidential Election

A process in which citizens of a country vote to elect the president, the head of the executive branch of the government.

Free-Rider Problem

A situation in which individuals benefit from resources or services without paying for them, which can lead to under-provision or depletion of those resources.

Selective Incentives

Benefits or rewards provided by groups to entice members to join and remain active within the organization, often used within the context of political or social groups.

American Association of Retired People

A large, United States-based non-profit organization focused on issues affecting those over the age of fifty, including health care, employment security, and retirement planning.