When the Rate of Interest Falls

Multiple Choice

When the rate of interest falls,

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