The rate of return on a bond is the

A decrease in the nominal interest rate ________ the opportunity cost of holding money

A) increases B) decreases C) can increase or decrease D) None of the above answers is correct because the nominal interest rate does not affect the opportunity cost of holding money.

The classical economists argued that planned saving and planned investment will always be equal because of changes in

A) the level of real disposable income. B) the interest rate. C) the price level. D) wages.