In the money market,if the money supply decreases,the opportunity cost of holding money:

Question

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When the money supply decreases in the money market, the scarcity of money increases and its value increases. This causes the opportunity cost of holding money to increase as well, as people can now earn higher interest rates on their money. As a result, the quantity of money demanded falls as people withdraw money from banks and seek higher interest rates elsewhere.

In the Money Market,if the Money Supply Decreases,the Opportunity Cost