When Interest Rates Are Higher

question 31

Multiple Choice

When interest rates are higher:

• A)​the opportunity cost of holding monetary assets is higher, and the quantity of money demanded, but not the demand for money, is lower.
• B)​the opportunity cost of holding monetary assets is higher, and the demand for money increases.
• C)​the opportunity cost of holding monetary assets is lower, and the quantity of money demanded, but not the demand for money, is greater.
• D)​the opportunity cost of holding monetary assets is lower, and the demand for money increases.

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