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:

Membrane

A selective barrier; it allows some things to pass through but stops others. Such membranes can be biological or synthetic.

Iris

The colored part of the eye surrounding the pupil that controls the amount of light entering the eye.

Opening

An aperture or gap that allows access, passage, or a view through something.

Light

A type of electromagnetic radiation that is visible to the human eye, responsible for the sense of sight.