Classify each statement as either true or false.

a. if two short-term assets offer different interest rates, then investors will move their wealth towards the asset with the lower return.
b. there is no practical difference between long-term interest rates and short-term interest rates.
c. money demand is affected by short-term interest rates and not long-term interest rates.
d. interest rates on financial assets that mature in ten months or less are long-term interest rates.
e. the opportunity cost of holding money falls when short-term interest rates fall.

Because of the violent nature of the sport, professional american football players are at risk of suffering concussions (or brain injuries) during the violent collisions that occur between players during the game. violent collisions involving hits to the head are particularly risky. suppose the commissioner of the national football league (nfl) institutes a rule requiring players to wear a new, lighter helmet that is designed to reduce head trauma during collisions between players on the field. while the new helmets the probability of a concussion resulting from each individual collision, at the same time the new helmets could also give football players an incentive to play more , which could potentially the amount of violent collisions and thus the number of concussions suffered by nfl players, all else equal.