People Choose to Hold a Smaller Quantity of Money If

question 10

Multiple Choice

People choose to hold a smaller quantity of money if

• A)the interest rate rises, which causes the opportunity cost of holding money to rise.
• B)the interest rate falls, which causes the opportunity cost of holding money to rise.
• C)the interest rate rises, which causes the opportunity cost of holding money to fall.
• D)the interest rate falls, which causes the opportunity cost of holding money to fall.

---

Definitions:

Physiological Level

Pertains to the basic physical and biological functions that maintain a living organism.

Analysis

The process of examining and breaking information down into smaller components for the purpose of interpretation or explanation.

Homeostasis

Homeostasis is the process through which biological systems maintain internal equilibrium by adjusting physiological processes.

Brain

The central organ of the human nervous system, responsible for processing sensory information, directing motor responses, and coordinating mental functions.