According to Keynes, it is __________ to have __________ holding money.
A) possible; capital gains or losses from
B) impossible; capital gains and losses from
C) possible; a higher opportunity cost of
D) impossible; a lower opportunity cost of

Question

Quizplus · Accepted Answer

According to Keynes, it is possible to have a higher opportunity cost of holding money. He proposed that individuals and businesses hold money for transaction purposes but would prefer to invest it to earn a return. Therefore, the opportunity cost of holding money is the return that could have been earned through investing, which can be made higher by increasing interest rates.

According to Keynes, It Is __________ to Have __________ Holding

According to Keynes, It Is to Have Holding