Author Question: When the opportunity cost of holding money increases, then A) the quantity of money supplied ... (Read 85 times)

meagbuch · **on:** Jun 30, 2018

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.