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The Amount of Wealth Households and Businesses Wish to Hold

Question 18

Multiple Choice

The amount of wealth households and businesses wish to hold in the form of money depends on


A) the benefits of holding money - the interest and profits gained - and the opportunity cost - the ease of making transactions gained.
B) the benefits of holding money - the status gained by doing so - and the opportunity cost - the cost of transactions not made.
C) the benefits of holding money - the ease of transactions gained - and the opportunity cost - the lost interest and profits.
D) the savings rate of households and businesses.

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