The Opportunity Cost of Holding Money Is

question 89

Multiple Choice

The opportunity cost of holding money is

• A)the level of income.
• B)the price level.
• C)the interest rate.
• D)the discount rate.

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Definitions:

Acreage Allotment Program

A governmental policy aimed at controlling crop production by limiting the acres that can be cultivated, historically used in the US to support agricultural prices.

Taxpayer-Subsidized

Financial support provided by the government to individuals or organizations, funded by taxpayers.

Price-Support Program

Government policies designed to maintain the price of a commodity at a certain level through subsidies or purchase of the market surplus.

Price Supports

Government interventions to maintain the market price of a commodity at a certain level to protect producers from market fluctuations.