The opportunity cost of holding money _______. A. Is determined by the inflation rate B. Is zero
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The opportunity cost of holding money _______.
A. Is determined by the inflation rate
B. Is zero because money earns no interest
C. Equals the nominal interest rate on bonds
D. Equals the real interest rate on bonds
Opportunity CostOpportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...
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Answer C By holding money ...View the full answer
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