Multiple Choice
Other things constant,if the interest rate rises,people prefer to hold:
A) less money because the opportunity cost of holding money has increased.
B) more money because the opportunity cost of holding money has increased.
C) less money because the opportunity cost of holding money has declined.
D) more money because the opportunity cost of holding money has declined.
E) the same amount of money because the opportunity cost of holding money is zero.
Correct Answer:

Verified
Correct Answer:
Verified
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