Jill, a bookkeeper, just received an attractive offer from an outside firm and so she asks for a raise from her current employer. She would be in a strong bargaining position because

Opportunity cost is

A. the financial cost of purchasing a good or services B. the marginal benefit minus the marginal cost C. the expected value of buying a good or service D. the value of the opportunity that you give up when you choose one activity instead of another one

An increase in real income ___ the demand for real money balances and thereby causes a ___ in the nominal rate of interest.

a. lowers; rise b. lowers; fall c. raises; rise d. raises; fall