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:

Proportional Representation System

An electoral arrangement that translates the number of votes received by political parties into a proportionate number of seats in the legislative body.

Winner-Take-All System

A winner-take-all system is an electoral system in which the candidate receiving the most votes wins the office or prize in question, with no rewards for those who finish second or lower.

Proportional Representation

Proportional representation is an electoral system in which parties gain seats in proportion to the number of votes cast for them.

Single-Seat

Pertaining to electoral systems or legislative chambers in which one representative is elected from each district or constituency.