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Sagot :
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
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