If the Cost of Going to the ATM in an Economy

question 43

Multiple Choice

If the cost of going to the ATM in an economy is $1 and the nominal interest rate is 5 percent, someone who spends $10 each day and has the total cost of holding cash = (365/T) + T, has a _____stolen.Assume that the individual visits the ATM once in every T days.

• A)5 percent
• B)10 percent
• C)15 percent
• D)20 percent

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Definitions:

Frequencies

In psychology, often refers to the rate at which a behavior occurs or the rate of occurrence of a particular mental process.

Harmony

The combination of simultaneously sounded musical notes to produce chords and chord progressions having a pleasing effect.

Stimulus

Any event or situation that evokes a response from an organism.

Pressure Wave

A type of wave propagated through fluids or gases where the wave fronts consist of regions of high and low pressure.