Which of the following indicates that the cost of money will increase?
A)Increase in the rate of inflation in an economy
B)Increase in liquidity of an asset
C)Decrease in federal deficit of a country
D)Increase in money supply
E)Decrease in tax rates for corporations

Question

Quizplus · Accepted Answer

An increase in the rate of inflation will cause the cost of money to increase as lenders will demand a higher interest rate to compensate for the loss of purchasing power over time.

Which of the Following Indicates That the Cost of Money