Which of the Following Is Correct

question 227

Multiple Choice

Which of the following is correct?

• A) The asset demand for money is downsloping because the opportunity cost of holding money declines as the interest rate rises.
• B) The asset demand for money is downsloping because the opportunity cost of holding money increases as the interest rate rises.
• C) The transactions demand for money is downsloping because the opportunity cost of holding money varies inversely with the interest rate.
• D) The asset demand for money is downsloping because bond prices and the interest rate are directly related.

---

Definitions:

Extinction

The process by which a species, genus, or family of organisms ceases to exist through death or inability to reproduce in its natural environment.

Values

Values are the principles or standards of behavior that are considered important in life or in a particular decision-making process.

Transaction

An economic event that involves the transfer of goods, services, or funds between two or more parties.

Incentives

Motivations or stimuli that influence the behavior of individuals or organizations, often aimed at achieving certain outcomes or goals.