As interest rates rise, the opportunity cost of holding money ________ and the demand for money ________

A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls


B

Economics

You might also like to view...

Of the English-owned joint stock companies that operated in North America, which was the only one to survive longer than 20 years?

a. The London Company b. The New Plymouth Company c. The Hudson Bay Company d. The Massachusetts Bay Company

Economics

If a process is a covariance stationary process, then it will have a finite second moment.

Answer the following statement true (T) or false (F)

Economics

The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:

A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.

Economics

Economists use the concept of ceteris paribus to examine a change in ____________ in a model, while assuming that all other variables remain constant.

Fill in the blank(s) with the appropriate word(s).

Economics