When Nominal Interest Rates on Financial Assets Are Low,the Opportunity

question 142

Multiple Choice

When nominal interest rates on financial assets are low,the opportunity cost of holding money is ________,so the quantity of money demanded by households and firms will be ________.

• A) high; high
• B) high; low
• C) low; high
• D) low; low

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Definitions:

Diversification Analysis

The process of assessing the potential benefits and risks of adding new varieties of products, services, or market segments to a business's portfolio to reduce risks.

Product Development

is the complete process of bringing a new product or service to market, from idea generation and design to prototype testing and eventual launch.

Market Development

The strategy of entering new markets or segments to expand the customer base for existing products or services.

Diversification

A strategy of expanding into new markets, products, or services to reduce risk and increase opportunities for growth.