If the nominal interest rate decreases:
A. the velocity of money should increase.
B. the cost of holding money increases.
C. the cost of holding money decreases.
D. the cost of holding money increases and the velocity of money should decrease.
Answer: C
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A) private goods B) public goods C) club goods D) inferior goods
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A) downward movement along B) upward movement along C) a rightward shift of D) a leftward shift of
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a. corrective taxation; regulation b. regulation; subsidization c. competition; subsidization d. regulation; corrective taxation
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