People Are Likely to Want to Hold More Money If

question 4

Multiple Choice

People are likely to want to hold more money if the interest rate

• A) increases making the opportunity cost of holding money rise.
• B) increases making the opportunity cost of holding money fall.
• C) decreases making the opportunity cost of holding money rise.
• D) decreases making the opportunity cost of holding money fall.

---

Definitions:

Microcontinent

A relatively small fragment of a continental plate that has been isolated due to tectonic processes.

Foreland Basin

A structural basin located in front of mountain ranges, formed by the earth's crust flexing downward due to the weight of thrust sheets.

Island Arc

An arc of volcanic islands that forms along the edge of a tectonic plate, usually above a plate that is being subducted.

Rifting

The process by which the Earth's crust is stretched and broken apart, leading to the formation of rift valleys and, eventually, new ocean basins.