The _______ the interest rate, the _______ the opportunity cost of holding money, and the _______ money people will want to hold.

Name: The _______ the interest rate, the _______ the opportunity cost of holding money, and the _______ money people will want to hold.
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Question

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A higher interest rate increases the opportunity cost of holding money because people forego the potential earnings from interest. Therefore, people will want to hold less money.

The _______ the Interest Rate, the _______ the Opportunity Cost

The _ the Interest Rate, the _ the Opportunity Cost