When the interest rate falls , other things remaining the same, what change occurs in the market for money?   The opportunity cost of holding money _______ and _______.     A. rises ; the demand for money decreases   B. rises ; the quantity of money demanded decreases   C. falls ; the quantity of money demanded increases   D. falls ; the demand for money increases

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter15: Monetary Theory And Policy
Section: Chapter Questions
Problem 1.2P
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When the interest rate
falls
,
other things remaining the same, what change occurs in the market for money?
 
The opportunity cost of holding money _______ and _______.
 
 
A.
rises
;
the demand for money
decreases
 
B.
rises
;
the quantity of money demanded
decreases
 
C.
falls
;
the quantity of
money
demanded
increases
 
D.
falls
;
the demand for money
increases
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