If the Interest Rate Increases,the Opportunity Cost of Holding Money

question 163

Multiple Choice

If the interest rate increases,the opportunity cost of holding money __________,and the quantity demanded of money __________.

• A) does not change; does not change
• B) increases; also increases
• C) decreases; increases
• D) increases; decreases
• E) decreases; also decreases

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Definitions:

Mental Abilities

Capacities for cognitive functions such as reasoning, problem-solving, and learning.

Babbling

Early stage of language development in infants characterized by the production of sounds or syllables repeated over and over, not yet forming recognizable words.

Schemes

Cognitive structures or patterns of action and thought used to deal with experiences, fundamental in the development of intelligence according to Piaget.

Receptive Vocabulary

The words a person can understand when heard or read, even if they cannot actively use them in speech or writing.