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Racer sss (daddydaddydo)
Race Number 1517
Date Wed, 16 Sep 2020 19:56:03 +0000
Speed 104 WPM Try to beat?
Accuracy 97.0%
Rank 2nd place (out of 5)
Opponents 1truelipstick (1st place)

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Money is like other goods: the higher the opportunity cost, the less of it we want to hold. Consider, first, how the transactions' demand for money (i.e., the money held to facilitate purchases of goods and services) is affected by higher interest rates. When the opportunity cost of money is high, we lose interest by holding more of it, so we find ways to hold less. For example, if interest rates are high enough, we might reduce the funds in our pockets and in our bank accounts and take funds out of interest-bearing mutual funds in smaller amounts more frequently.
Applied Intermediate Macroeconomics (book) by Kevin D. Hoover (see stats)

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