The Demand for Money Schedule Shows the ________ Relationship Between

question 138

Multiple Choice

The demand for money schedule shows the ________ relationship between money demand and the nominal interest rate which means that as the ________.

• A) negative; nominal interest rate increases, the opportunity cost of holding money increases.
• B) negative; nominal interest rate increases, the opportunity cost of holding money decreases.
• C) positive; nominal interest rate increases, the opportunity cost of holding money increases.
• D) positive; nominal interest rate increases, the opportunity cost of holding money decreases.
• E) negative; the opportunity cost of holding money increases, the nominal interest rate increases.

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Definitions:

Inhibits

To hinder, limit, or prevent a process or action, often used in the context of biological and chemical reactions.

One-Way Flow

A system or process in which a substance or object moves in a single direction without returning or recirculating.

Energy

The capacity to do work or cause physical change; energy, potential or kinetic, exists in many forms such as chemical, electrical, and mechanical.

Biological Systems

Complex networks of biologically relevant entities including organisms, their parts, and the processes that govern their interactions and functions.