The Asset Demand for Money Is Downward Sloping Because

question 164

Multiple Choice

The asset demand for money is downward sloping because:

• A)the opportunity cost of holding money increases as the interest rate rises.
• B)it is more attractive to hold money at high interest rates than at low interest rates.
• C)bond prices rise as interest rates rise.
• D)the opportunity cost of holding money declines as the interest rate rises.

---

Definitions:

Oxygen Levels

The concentration of oxygen in a given environment, critical for the survival and performance of most life forms.

Direct Quotation

Text taken verbatim from a source, usually marked by quotation marks to indicate the exact words of another speaker or writer.

Paraphrasing

The act of rewording or restating text or speech using different words, often to achieve clearer and simpler communication.

Indirect Quotation

The conveyance of someone's words or expressions without quoting them directly, often paraphrased.