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If the Interest Rate Rises from 1 Percent to 3

Question 77

Multiple Choice

If the interest rate rises from 1 percent to 3 percent, the ________ decreases and the opportunity cost of holding money ________.


A) quantity of money demanded; rises
B) quantity of money demanded; falls
C) quantity of money supplied; rises
D) quantity of money supplied; falls
E) demand for money; rises

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