Suppose the Interest Rate Increases

question 101

Multiple Choice

Suppose the interest rate increases.How are opportunity cost of holding money and quantity of money demanded affected?  

• A) The opportunity cost of holding money increases, therefore the quantity of money demanded increases. 
• B) The opportunity cost of holding money increases, therefore the quantity of money demanded decreases. 
• C) The opportunity cost of holding money decreases, therefore the quantity of money demanded increases. 
• D) The opportunity cost of holding money decreases, therefore the quantity of money demanded decreases.

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Definitions:

Stomach

A digestive organ in the gastrointestinal tract that plays a key role in digestion by secreting stomach acids and enzymes.

Gastric Motility

The movements of the stomach muscles that mix and propel contents through the digestive system.

Gastric Secretion

The process of producing and releasing fluids such as hydrochloric acid and digestive enzymes by the stomach's glands to aid in digestion.

Cholecystokinin

A hormone that stimulates the digestion of fat and protein by facilitating the digestion and slowing the rate of stomach emptying.