Which of the following statements is true?
A) Interest rates are directly related to the price of old or existing bonds.
B) The monetarist transmission mechanism is indirect whereas the Keynesian transmission mechanism is direct.
C) The interest rate is the opportunity cost of holding money.
D) a and b
E) a,b and c

Question

Quizplus · Accepted Answer

Interest rates are inversely related to the price of existing bonds, the monetarist transmission mechanism is direct, and the interest rate is indeed the opportunity cost of holding money.

Which of the Following Statements Is True