Solved

According to Liquidity Preference Theory,the Opportunity Cost of Holding Money

Question 46

Multiple Choice

According to liquidity preference theory,the opportunity cost of holding money is


A) the interest rate on bonds.
B) the inflation rate.
C) the cost of converting bonds to a medium of exchange.
D) the difference between the inflation rate and the interest rate on bonds.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q41: Which of the following shifts aggregate demand

Q43: According to liquidity preference theory,if the quantity

Q44: According to liquidity preference theory,if the price

Q45: According to the theory of liquidity preference,<br>A)if

Q47: If the stock market crashes,then<br>A)aggregate demand increases,which

Q48: Figure 34-3. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 34-3.

Q49: In the short run,an increase in the

Q50: If the stock market booms,then<br>A)aggregate demand increases,which

Q51: "Monetary policy can be described either in

Q141: When the Fed increases the money supply,