According to the inventory theoretic approach to the transaction demand for money, we would expect that an increase in the level of income would cause Select one: a money holdings to rise and bond holding to fall b.money holdings and bond holdings to rise c.no change in money or bond holdings d.bond holdings to rise and money holdings to fall A firm's overall cost of capital Select one a is the required return on the total assets of a firm b is another term for the fum s internal rate of return a.is unaffected by changes in the tax rate divaries inversely withAccording to the inventory theoretic approach to the transaction demand for money, we would expect that an increase in the level of income would cause Select one: a money holdings to rise and bond holding to fall b.money holdings and bond holdings to rise c.no change in money or bond holdings d.bond holdings to rise and money holdings to fall A firm's overall cost of capital Select one a is the required return on the total assets of a firm b is another term for the fum s internal rate of return a.is unaffected by changes in the tax rate divaries inversely withThe major liability of commercial bank is Select one a auto loans b commercial loans c bank reserved d depositsThe major liability of commercial bank is Select one a auto loans b commercial loans c bank reserved d depositsWhich statement is incorrect? Select one. a. The new classical economists criticized the permanent income hypothesis due to its forward- looking expectations b.Expansionary monetary policies make credit more available and reduce liquidity constraints c. Permanent Income hypothesis is consistent with the failure of quarter to quarter movements of consumption due to many transitory income changes to which consumption does ndespond d With a low MPC, a change in tax policy will not cause a large consumption responseWhich statement is incorrect? Select one. a. The new classical economists criticized the permanent income hypothesis due to its forward- looking expectations b.Expansionary monetary policies make credit more available and reduce liquidity constraints c. Permanent Income hypothesis is consistent with the failure of quarter to quarter movements of consumption due to many transitory income changes to which consumption does ndespond d With a low MPC, a change in tax policy will not cause a large consumption response