Business
Business, 16.12.2019 23:31, kaiyerecampbell95

Suppose you've just inherited $10,000 from a relative. you're trying to decide whether to put the $10,000 in a non-interest-bearing checking account so that you can use it whenever you want (that is, hold it as money), or to use it to buy a u. s. treasury bond. suppose the interest rate on the bond is 5% per year. a) what would be the opportunity cost of holding the $10,000 as money? b) suppose the interest rate fell to 2% per year. what would happen to the opportunity cost of holding the $10,000 as money? c) what does this previous analysis suggest about the market for money?

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Suppose you've just inherited $10,000 from a relative. you're trying to decide whether to put the $1...

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