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Which of the Following Describes How the Opportunity Cost of Holding

Question 15

Multiple Choice

Which of the following describes how the opportunity cost of holding money affects people's desire to hold money?  


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

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