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Suppose you've fust inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in 0 non-interest-bearing account so that you can

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Suppose you've fust inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in 0 non-interest-bearing account so that you can use it whenever you want (that is, hold it as money) or to use it to buy a U.S. Treasury bond. The opportunity cost of halding the intheritance as money depends on the interest rate on the bond. For each of the interest rates in the following table, compute the opportunity cost of nolding the $10,000 as money. What does the previous analysis suggest about the market for money? The supply of money is indeperident of the interest rote. The quantity of money demanded increases as the interest rate falls. The quantity of money demanded decreases as the interest rate fais

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