As the nominal interest rate increases ________
A) it becomes more costly to hold money instead of bonds
B) the quantity of money demanded falls
C) the opportunity cost of holding money rises
D) all of the above
E) none of the above
D
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What happens to the demand curve when a nonprice determinant of demand changes?
A. The demand curve shifts horizontally. B. There is a movement along the demand curve. C. The consumer moves to a different price point. D. Nothing changes with the demand curve.
The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
An industry spy from firm A comes to firm B and offers to pay B in exchange for B's certain and enforceable promise to not invest. What is the most that firm A will be willing to pay B to not invest?
A. $30 million. B. $50 million. C. $20 million. D. $35 million.