When Does the Opportunity Cost of Holding Money Decrease or Increase

Multiple Choice

When does the opportunity cost of holding money decrease or increase, and how does people's desire to hold money change?

A) The opportunity cost of holding money decreases when the interest rate increases, so people desire to hold more money.
B) The opportunity cost of holding money decreases when the interest rate increases, so people desire to hold less money.
C) The opportunity cost of holding money increases when the interest rate increases, so people desire to hold more money.
D) The opportunity cost of holding money increases when the interest rate increases, so people desire to hold less money.