As the Prevailing Interest Rate Decreases, the Opportunity Cost of Money

question 117

Multiple Choice

As the prevailing interest rate decreases, the opportunity cost of money

• A) Increases for both lender and borrower.
• B) Increases for the borrower and decreases for the lender.
• C) Decreases for both lender and borrower.
• D) Decreases for the borrower and increases for the lender.

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