Multiple Choice
The opportunity cost of holding money balances increases when:
A) the inflation rate decreases.
B) the interest rate increases.
C) the interest rate decreases.
D) GDP is far from full employment.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q77: Exhibit 16-5 Money, investment and product markets<br><img
Q78: Which type of demand for money causes
Q79: Which of the following explains why the
Q80: Keynes called the money people hold in
Q81: According to the quantity theory of money,
Q83: Suppose nominal GDP equaled $10,988 billion while
Q84: Other things being equal, an increase in
Q85: Exhibit 16-3 Money market demand and supply
Q86: Monetarists accept the idea that velocity is
Q193: The demand curve for money<br>A) shows the