The opportunity cost of money is:

A. the price level.
B. the nominal interest rate.
C. the time spent going to the bank to withdraw funds.
D. the fees charged by banks to provide checking services.

Answer: B

Economics

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The long-run perfectly competitive equilibrium

A. results in normal profits. B. is not economically efficient. C. will never change once it is realized. D. is realized only in constant-cost industries.

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Based on the model of the money market, if prices in the economy decrease, the equilibrium interest rate should:

A. stay the same. B. increase. C. decrease. D. increase to the same extent that the supply of money increases.

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