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:

Parenthood

The state or experience of being a parent; involves raising and caring for one's offspring, and encompasses both the biological and emotional aspects.

Subjective Feelings

Personal experiences of emotions or sensations that are influenced by an individual's own perspectives, beliefs, or mental states.

Internal Factors

Influences within an organization or individual that affect their behavior and decisions.

External Factors

Elements outside an individual or system that influence or affect their behavior and outcomes.