When Interest Rates Are Higher

Multiple Choice

When interest rates are higher:

A) ​the opportunity cost of holding monetary assets is higher, and the quantity of money demanded, but not the demand for money, is lower.
B) ​the opportunity cost of holding monetary assets is higher, and the demand for money increases.
C) ​the opportunity cost of holding monetary assets is lower, and the quantity of money demanded, but not the demand for money, is greater.
D) ​the opportunity cost of holding monetary assets is lower, and the demand for money increases.