Refer to the given market-for-money diagrams. If the interest rate was at 8 percent, people would have insufficient liquidity, which would cause them to reduce their spending on consumer goods. buy bonds, which would cause bond prices to fall and the interest rate to rise. sell bonds, which would cause bond prices to fall and the interest rate to fall. buy bonds, which would cause bond prices to rise and the interest rate to fall.

Assume that a local bank sells two services, checking accounts and atm card services. the bank’s only two customers are mr. donethat and ms. beenthere. mr. donethat is willing to pay $8 a month for the bank to service his checking account and $2 a month for unlimited use of his atm card. ms. beenthere is willing to pay only $5 for a checking account, but is willing to pay $9 for unlimited use of her atm card. assume that the bank can provide each of these services at zero marginal cost.refer to scenario 17-5. if the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account