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

question 52

Multiple Choice

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

• A)decreases and the demand for money curve shifts rightward.
• B)decreases and there is a movement downward along the demand for money curve.
• C)increases and there is a movement upward along the demand for money curve.
• D)decreases and the demand for money curve shifts leftward.
• E)increases and the demand for money curve shifts rightward.

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