Acquiring a supplier because it becomes more profitable

When the opportunity cost of holding money increases, then

A) the quantity of money supplied increases. B) people want to hold more money. C) the real interest rate falls. D) the nominal interest rate falls. E) people want to hold less money.

One reason some manufacturing companies have moved production from overseas locations back to the United States is an increasing preference by U.S. consumers for products made in the United States. Assuming that managers at these companies used all

available information, including the increased preference by U.S. consumers for domestically produced, when making the decision to move production back to the United States exemplifies which key economic idea? A) People are rational. B) People respond to economic incentives. C) Optimal decisions are made at the margin. D) The market system relies on the principle of voluntary exchange.