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

question 90

Multiple Choice

When nominal interest rates on financial assets are high,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:

Sales Revenue

The sum of all revenue generated from selling products or services prior to deducting any costs.

Market Share

The percentage of an industry's sales that a particular company controls.

Profit

The financial gain made in a transaction or operation, calculated as the difference between the sales revenue and the cost of goods sold.

Implantable Medical Devices

Medical devices designed to be inserted into the human body, typically to replace missing biological structures, support damaged biological structures, or enhance existing biological structures.