The opportunity cost of holding money refers to
A) the pleasure that would have been received if the money balances had been used to buy a good or service.
B) the price level.
C) the service fees charged to withdraw currency from an ATM.
D) the interest that could have been earned if the money balances had been changed into an interest- bearing asset.
Correct Answer:
Verified
Q344: The quantity of real money demanded is
A)
Q345: Suppose you hold $50 to buy groceries
Q346: If the price level rises, the quantity
Q347: When the interest rate rises, the
A) quantity
Q348: Which of the following decreases the demand
Q350: The nominal demand for money is
A) proportional
Q351: The demand for money is
A) negatively related
Q352: The demand for nominal money
A) is the
Q353: The opportunity cost of holding money is
Q354: If the price level doubles, the
A) nominal
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