The Interest Rate Paid on Bonds Increases from 4% to 7%.This

The interest rate paid on bonds increases from 4% to 7%.This will cause

A) no change in the optimal balance of money because checking deposits don't earn interest.
B) the optimal balance of money to increase because it raises the opportunity costs of holding money.
C) the optimal balance of money to decrease because it raises the opportunity cost of holding money.
D) the optimal balance of money to increase because it reduces the opportunity cost of holding money.