Suppose Interest rate on

Suppose Interest rate on

Suppose Interest rate on the bond is 8 percent per year. What would be the opportunity cost go holding the $10,000 as money?Then, suppose that interest rate fell to 1 percent per year. This would cause the oportunity cost of holidng the $10,000 as money to_____ to _____ per year.What does the previous analysis suggest abou the market money. It can be more than one-The quantity of money demanded increases as the intrest rate falls.- the quantity of money demeaned decreases as the interest rate falls.- the supply of money is independent of the interest rate

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