All other factors equal, as nominal interest rates decrease, checking account balances should:

Name: All other factors equal, as nominal interest rates decrease, checking account balances should:
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Question

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As nominal interest rates decrease, the opportunity cost of holding cash decreases, making it more attractive to keep money in checking accounts rather than investing in other options. Therefore, checking account balances should increase.

All Other Factors Equal, as Nominal Interest Rates Decrease, Checking