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

question 63

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

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