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Money's Convenience Yield Is

Question 83

Multiple Choice

Money's convenience yield is


A) the nominal interest rate paid on money balances minus the expected inflation rate.
B) the nominal interest rate paid on money balances plus the expected inflation rate.
C) the amount of interest sacrificed in exchange for money's safety, liquidity, and low information costs.
D) the interest rate on T-bills minus the interest rate on money.

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