The Asset Demand for Money Is Downward Sloping Because

question 164

Multiple Choice

The asset demand for money is downward sloping because:

• A)the opportunity cost of holding money increases as the interest rate rises.
• B)it is more attractive to hold money at high interest rates than at low interest rates.
• C)bond prices rise as interest rates rise.
• D)the opportunity cost of holding money declines as the interest rate rises.

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Definitions:

Skeptical

Characterized by a questioning attitude or doubt towards one or more items of putative knowledge or belief.

Critical Thinking Skills

The capacity to analyze facts, generate and organize ideas, defend opinions, make comparisons, draw inferences, evaluate arguments, and solve problems.

Prospects Of Success

The potential or likelihood of achieving desired results, gains, or accomplishments in the future.