For the U.S.economy,money holdings are a
A)large part of household wealth,and so the interest-rate effect is large.
B)large part of household wealth,and so the wealth effect is large.
C)small part of household wealth,and so the interest-rate effect is small.
D)small part of household wealth,and so the wealth effect is small.

Question

Quizplus · Accepted Answer

Money holdings are typically a small part of household wealth and do not have a large impact on the economy through the interest-rate effect or wealth effect. Therefore, choice D is the best answer.

For the U.S.economy,money Holdings Are a