Refer to Figure 21.1. The highest 20% of the population earn ________ of total income

A major principle of economics is that people respond to incentives

Indicate whether the statement is true or false

When the interest rate decreases, the opportunity cost of holding money

a. increases, so the quantity of money demanded increases. b. increases, so the quantity of money demanded decreases. c. decreases, so the quantity of money demanded increases. d. decreases, so the quantity of money demanded decreases.