When Nominal Interest Rates Are Higher, _____

question 28

Multiple Choice

When nominal 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)both the opportunity cost of holding monetary assets and the quantity of money demanded are higher
• 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 is higher
• E)the opportunity cost of holding monetary assets is higher and therefore the quantity of money demanded is higher

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Definitions:

Lamellated Corpuscles

Pressure receptors in the skin and other organs that respond to deep pressure and vibration.

Ruffini Corpuscles

Sensory receptors in the skin that respond to stretch and sustained pressure.

Two-Point Discrimination

The ability of the skin to distinguish two nearby points as separate stimuli, a measure of sensory nerve function.

Nociceptors

Sensory receptors that respond to potentially harmful stimuli by sending nerve signals to the brain triggering the sensation of pain.