Checking Account Interest Rates. During the 1980s, banks started to pay interest (at low rates) on checking accounts for the first time. Given what you know about opportunity costs, how would interest pay on checking to affect the demand for money? 

Purchasing Long-Term Government Bonds. What would happen to the supply of money if a central bank purchased long-term government bonds held by the public?

Answer rating: 100% (QA)

a Interestbearing checking accounts make holding money more attractive This increases the demand for ... View the full answer