Multiple Choice
The opportunity cost of holding money is the
A) cost incurred to change other assets into money.
B) time cost of accessing funds.
C) value of the goods and services a person is able to obtain with the money.
D) interest a person could have earned by holding other forms of wealth instead.
Correct Answer:

Verified
Correct Answer:
Verified
Q17: Different theories of the interest rate are
Q20: The multiplier effect means that aggregate demand
Q21: When the government cuts personal income taxes,
Q23: Suppose that consumers become pessimistic about the
Q24: According to the theory of liquidity preference,
Q25: Although many factors determine the quantity of
Q26: An increase in the interest rate reduces
Q27: When the central bank has lowered or
Q29: Explain the logic according to liquidity preference
Q171: Explain why the interest rate is the