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.

C) small part of household wealth, and so the interest-rate effect is small.

Explanation:

During 2011 the per capita holdings of US dollars amount to only $2950, compared to the GDP per capita of $49,794 it is not a significant amount. Some government agencies estimate that nearly 2/3 of all $100 bills are held in foreign countries.

The decrease in money holdings can be attributed to an increase in the use of banking services, especially an increase in the use of debit cards, but also credit cards and checks.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answertrue;