Which of the Following Is Correct

question 223

Multiple Choice

Which of the following is correct?

• A)The asset demand for money is downward sloping because the opportunity cost of holding money declines as the interest rate rises.
• B)The asset demand for money is downward sloping because the opportunity cost of holding money increases as the interest rate rises.
• C)The transactions demand for money is downward sloping because the opportunity cost of holding money varies inversely with the interest rate.
• D)The asset demand for money is downward sloping because bond prices and the interest rate are directly related.

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