The Asset Demand for Money Is Downsloping Because

question 303

Multiple Choice

The asset demand for money is downsloping 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.

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