Why is the demand for real money balances downward sloping?
A) because the opportunity cost of holding money decreases as interest rates decrease
B) because when the interest rate falls the quantity of money demanded increases
C) because lower interest rates encourage firms and households to increase their money holdings
D) all of the above
E) none of the above
D
Economics
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What will be an ideal response?
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Some products of the knowledge economy
A) have an initial marginal cost that is very low and then rises. B) have no marginal costs. C) have an initial marginal cost that is very high and then falls to zero. D) none of these choices.
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