When the Nominal Interest Rate Rises, the Opportunity Cost of Holding

question 104

Multiple Choice

When the nominal interest rate rises, the opportunity cost of holding money

• A)rises and people hold more money.
• B)falls and people hold more money.
• C)falls and people hold less money.
• D)rises and people hold less money.
• E)does not change.

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Definitions:

Primary Storage

Refers to the main storage of a computer where data is temporarily stored and accessed by the processor directly, such as RAM.

Registers

High-speed storage areas in the CPU that store very small amounts of data and instructions for short periods.

The ALU

An Arithmetic Logic Unit (ALU) is a digital circuit used to perform arithmetic and logic operations in computers.

Mathematical Calculations

The process of using mathematical symbols and methods to perform quantifiable measurements and solve numerical problems.