As the nominal interest rate increases, the opportunity cost of ...

[bobbie]

As the nominal interest rate increases, the opportunity cost of holding money ________ and the quantity of money demanded ________.
 
  A) decreases; decreases
  B) increases; increases
  C) decreases; increases
  D) increases; decreases
  E) increases; does not change because people need money

Question 2

Labor force productivity has increased from 30 per hour to 32 per hour over the past year. This could result from
 
  A) an increase in real GDP with no change in the aggregate hours or a decrease in aggregate hours with no change in real GDP.
  B) only an increase in real GDP.
  C) an increase in population.
  D) an increase in the labor force participation rate.
  E) only a decrease in aggregate hours.

[alvinum]

Answer to Question 1

D

Answer to Question 2

A