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The Demand for Money Schedule Shows the --------------------relationship Between Money

Question 118

Multiple Choice

The demand for money schedule shows the --------------------relationship between money demand and the nominal interest rate which means that as the -------------------- .


A) positive; nominal interest rate increases, the opportunity cost of holding money decreases
B) negative; nominal interest rate increases, the opportunity cost of holding money increases
C) negative; the opportunity cost of holding money increases, the nominal interest rate increases
D) negative; nominal interest rate increases, the opportunity cost of holding money decreases
E) positive; nominal interest rate increases, the opportunity cost of holding money increases

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