If one were to own government bonds or other forms of financial assets, they would earn a real interest rate. Yet, the opportunity cost of holding money is equal to the nominal interest rate. Explain why and how.

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The Answer of If one were to own government bonds or other forms of financial assets, they would earn a real interest rate. Yet, the opportunity cost of holding money is equal to the nominal interest rate. Explain why and how.

If One Were to Own Government Bonds or Other Forms