The opportunity cost of holding money increases when

Name: The opportunity cost of holding money increases when
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The opportunity cost of holding money is the return that could be earned if the money was instead invested. As nominal interest rates rise, the opportunity cost of holding money increases because the return on investment becomes higher. Therefore, choice C is the correct answer. The other choices do not directly relate to the opportunity cost of holding money.

The Opportunity Cost of Holding Money Increases When