When the opportunity cost of holding money increases, then A) ...

[meagbuch]

When the opportunity cost of holding money increases, then
 
  A) the quantity of money supplied increases.
  B) people want to hold more money.
  C) the real interest rate falls.
  D) the nominal interest rate falls.
  E) people want to hold less money.

Question 2

If the reserve ratio is raised, the money multiplier
 
  A) stays the same. B) is doubled. C) is lowered. D) is increased.

[ASDFGJLO]

Answer to Question 1

E

Answer to Question 2

C

[meagbuch]

Excellent

[tkempin]

TYSM