Which of the following varies directly with the interest rate?
A. The opportunity cost of holding money
B. The transactions demand for money
C. The asset demand for money
D. The level of investment
A. The opportunity cost of holding money
Economics
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In the model of aggregate demand and aggregate supply, the GDP deflator measures the
a) price of oil. b) average price level. c) nominal interest rate. d) amount of real output.
Economics
Monetarists differ from traditional classical theorists in their belief that
a. velocity is not constant b. the only motive for demanding money is the transactions demand c. investment is very sensitive to changes in the interest rate d. the economy operates at full-employment e. increases in the money supply do not lead to changes in real GDP
Economics