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If the Interest Rate Rises from 1 Percent to 3

question 77

Multiple Choice

If the interest rate rises from 1 percent to 3 percent, the ________ decreases and the opportunity cost of holding money ________.


Definitions:

Utility Function

A representation of a consumer's preferences, indicating the level of satisfaction derived from various bundles of goods and services.

Units of X

Specific measures or quantities of a given variable or product X.

Price of X

The cost associated with acquiring a unit of good or service X.

Utility Function

An economic model that measures preferences over a set of goods and services.

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