g The asset demand for money is downsloping because Multiple Choice the opportunity cost of holding money increases as the interest rate rises. it is more attractive to hold money at high interest rates than at low interest rates. bond prices rise as interest rates rise. the opportunity cost of holding money declines as the interest rate rises.

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03-05-2021
Business

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g The asset demand for money is downsloping because Multiple Choice the opportunity cost of holding money increases as the interest rate rises. it is more attractive to hold money at high interest rates than at low interest rates. bond prices rise as interest rates rise. the opportunity cost of holding money declines as the interest rate rises.

Sagot :

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andromache andromache · Answer 1 · 2021-05-05T22:45:28-04:00

Answer:

the opportunity cost of holding money increases as the interest rate rises

Explanation:

Normally people hold the money because of the speculation that means the rate of interest is less now and it could be reached to the bottom so it would be ought that it will rise now. Moreover when the rate of interest is rise than the price of the bond would decline. At this time, the people hold the money in a greed that there is a rise in the interest rate that also rise the opportunity cost

Therefore the first option is correct

Sagot :

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