Question

if the interest rate on cds increase from 5% to 10% the opprunity cost of holding money will and the quanity demanded of money will

Answer 1

Answer:

D. increase; decrease

Explanation:

In the case when the rate of interest on cds increased from 5% to 10% so here the opportunity cost of holding the money would also be increased while on the other hand the quantity demanded of the money would be decreased

Therefore as per the given situation the option D is corect

And, the rest of the options are wrong