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.
Correct Answer:

Verified
Correct Answer:
Verified
Q10: Which of the following has been a
Q11: As the interest rate decreases, what is
Q12: Which of the following will cause the
Q13: Exhibit 14-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 14-6
Q14: Exhibit 14-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 14-1
Q16: Suppose money supply decreases, causing the interest
Q17: When would an increase in aggregate demand
Q18: Suppose the money supply is $600, the
Q19: Suppose the money supply is $300, the
Q20: Suppose the money supply expands.What will be