The lower the nominal interest rate, the
A) greater the demand for money.
B) greater the quantity of money demanded.
C) greater the quantity of money supplied.
D) smaller the demand for goods and services.
E) smaller the quantity of money demanded.

Question

Quizplus · Accepted Answer

A lower nominal interest rate reduces the opportunity cost of holding money, leading to a greater quantity of money demanded.

The Lower the Nominal Interest Rate, the