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Youve just received a windfall of $25,000. You dont believe the money is needed at the time and decide to put it away. How does

  1. Youve just received a windfall of $25,000. You dont believe the money is needed at the time and decide to put it away. How does your situation impact the market determined cost of money?

  • Your risk tolerance is high. This increases the demand for available funds

  • Your time preferences for consumption of the money is in a future period. This increases the demand for available funds

  • Your risk tolerance is high. This increases the supply of available funds.

  • Your time preferences for consumption of the money is in a future period. This increases the supply of available funds

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