Suppose a typical household holds $500 when the interest rate is 2 percent.
When the interest...
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Business, 05.05.2020 19:43 infoneetusinghoyg22o
Suppose a typical household holds $500 when the interest rate is 2 percent.
When the interest rate rises to 3 percent, the household would most likely hold:
A) less money because the opportunity cost of holding money is higher.
B) less money because the opportunity cost of holding money is lower.
C) more money because the opportunity cost of holding money is higher.
D) more money because the opportunity cost of holding money is lower.
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