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People Choose to Hold a Smaller Quantity of Money If

Question 10

Multiple Choice

People choose to hold a smaller quantity of money if


A) the interest rate rises, which causes the opportunity cost of holding money to rise.
B) the interest rate falls, which causes the opportunity cost of holding money to rise.
C) the interest rate rises, which causes the opportunity cost of holding money to fall.
D) the interest rate falls, which causes the opportunity cost of holding money to fall.

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