As the nominal interest rate increases ________. Select one: a. the opportunity cost of holding money rises b. the quantity of money demanded rises c. it becomes more costly to hold bonds instead of money d. all of the given options
As the nominal interest rate increases ________. Select one: a. the opportunity cost of holding money rises b. the quantity of money demanded rises c. it becomes more costly to hold bonds instead of money d. all of the given options
Chapter24: Money And The Federal Reserve System
Section: Chapter Questions
Problem 1SQP
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Q7
As the nominal interest rate increases ________.
Select one:
a. the opportunity cost of holding money rises
b. the quantity of money demanded rises
c. it becomes more costly to hold bonds instead of money
d. all of the given options
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