When the Rate of Interest Increases

Multiple Choice

When the rate of interest increases,

A) the opportunity cost of money increases, and the quantity of money demanded increases.
B) the opportunity cost of money decreases, and the quantity of money demanded declines.
C) the demand for money is unaffected.
D) the opportunity cost of money decreases, and the quantity of money demanded increases.
E) the opportunity cost of money increases, and the quantity of money demanded declines.