Deflation can render monetary policy powerless

The opportunity cost of holding money refers to

A) the service fees associated with checking accounts. B) the service fees associated with checking accounts plus the costs undertaken to prevent theft. C) the interest that could have been earned if the money balances had been transferred to an interest-bearing asset. D) the pleasure that would have been received if the money balances had been used to buy a good or service.

When marginal utility begins to diminish, total utility always diminishes

a. True b. False Indicate whether the statement is true or false