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  3. Study Set
    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    Explain Why the Interest Rate Is the Opportunity Cost of Holding
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Explain Why the Interest Rate Is the Opportunity Cost of Holding

Question 171

Question 171

Essay

Explain why the interest rate is the opportunity cost of holding currency. What is the benefit of holding currency?

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The nominal interest rate on currency is...

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