When the Rate of Interest Increases

question 107

Multiple Choice

When the rate of interest increases,

• A)the opportunity cost of money increases, and the quantity of money demanded increases.
• B)the opportunity cost of money decreases, and the quantity of money demanded declines.
• C)the demand for money is unaffected.
• D)the opportunity cost of money decreases, and the quantity of money demanded increases.
• E)the opportunity cost of money increases, and the quantity of money demanded declines.

---

Definitions:

Bipolar Disorders

A group of mood disorders characterized by dramatic shifts in a person's mood, energy, and ability to function, including periods of mania and depression.

Cognitive Therapy

A form of therapy that focuses on how clients’ cognitions (e.g., expectations, attitudes, and beliefs) lead to distress and may be modified to relieve distress and promote adaptive behavior.

Beliefs

Mental attitudes or convictions held by an individual or group regarding the truth or existence of something.

Attitudes

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.