As opportunity cost of holding money increases, people can

Name: As opportunity cost of holding money increases, people can
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the opportunity cost of holding money increases, meaning the cost of not investing or using that money in other ways to gain a return is high, individuals may seek substitutes for money, such as stocks or bonds, as a way to earn a return on their investment. This is a rational response to the increased opportunity cost of holding money.

As Opportunity Cost of Holding Money Increases, People Can