When the nominal interest rate rises, the opportunity cost of holding money
A) rises and people hold more money.
B) falls and people hold less money.
C) falls and people hold more money.
D) rises and people hold less money.
D
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Assume the production of a good causes a negative externality. In the market equilibrium, the marginal consumer values the good at
a. less than the social cost of producing it. b. less than the private cost of producing it. c. more than the social cost of producing it. d. more than the private cost of producing it.
Kevin has lost his job in an automobile plant because the company switched to robots for its welding step in the assembly line. Kevin plans to go to technical school to learn how to repair microcomputers. The type of unemployment Kevin is faced with is:
A. Cyclical B. Frictional C. Structural D. Natural