When the Nominal Interest Rate Rises, the Opportunity Cost of Holding

question 43

Multiple Choice

When the nominal interest rate rises, the opportunity cost of holding money

• A)falls, and people hold more money.
• B)rises, and people hold less money.
• C)falls, and people hold less money.
• D)rises, and people hold more money.
• E)does not change.

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Definitions:

Unity of Command

This principle asserts that each employee should receive orders from only one superior to avoid confusion and conflicts in command.

Hierarchically Connected

Organized or structured in a way that entities are ranked one above the other according to status or authority.

Hierarchy of Authority

An organizational structure where entities are ranked according to levels of power and authority, usually from highest to lowest.

Increasing Authority

The process of granting more decision-making power or control to individuals or groups within an organization.