The Higher the Nominal Interest Rate, the

question 458

Multiple Choice

The higher the nominal interest rate, the

• A) greater the opportunity cost of holding money.
• B) lower the quantity of money demanded.
• C) more the demand for money curve shifts leftward.
• D) Both answers A and B are correct.

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Definitions:

George C Wallace

An American politician known for his pro-segregation attitudes and as the Governor of Alabama for four terms.

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A competition between candidates aiming for the presidency, involving campaigns, debates, and elections.

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A pivotal year marked by significant events worldwide including civil rights movements, protests, and assassinations.

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The 37th President of the United States, serving from 1969 to 1974, known for his significant foreign policy achievements and the Watergate scandal that led to his resignation.