When the Rate of Interest Increases

question 107

Multiple Choice

When the rate of interest increases,

• A)the opportunity cost of money increases, and the quantity of money demanded increases.
• B)the opportunity cost of money decreases, and the quantity of money demanded declines.
• C)the demand for money is unaffected.
• D)the opportunity cost of money decreases, and the quantity of money demanded increases.
• E)the opportunity cost of money increases, and the quantity of money demanded declines.

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Definitions:

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