Suppose that the interest rate falls from 6% to 3%, what does this imply for the opportunity cost of holding money and
the quantity of money demanded?
Select one:
a. the opportunity cost of holding money increases, and the quantity of money demanded decreases.
b. the opportunity cost of holding money decreases, and the quantity of money demanded decreases.
c. the opportunity cost of holding money increases, and the quantity of money demanded increases.
d. the opportunity cost of holding money decreases, and the quantity of money demanded increases.