When the Interest Rate Increases,the Opportunity Cost of Holding Money

question 97

Multiple Choice

When the interest rate increases,the opportunity cost of holding money

• A)increases,so the quantity of money demanded increases.
• B)increases,so the quantity of money demanded decreases.
• C)decreases,so the quantity of money demanded increases.
• D)decreases,so the quantity of money demanded decreases.

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Definitions:

Generalized Anxiety Disorder (GAD)

A mental health disorder characterized by persistent, excessive, and unrealistic worry about everyday things, often with no obvious cause.

Benzodiazepine

A class of drugs primarily used for treating anxiety, insomnia, and seizures by enhancing the effect of the neurotransmitter GABA in the brain.

Selective Serotonin Reuptake Inhibitor (SSRI)

A class of drugs commonly used to treat depression and anxiety by increasing serotonin levels in the brain, thereby improving mood.

Obsessive-Compulsive Disorder (OCD)

Anxiety disorder characterized by obsessions (persistent thoughts) and compulsions (rituals).