问题
单项选择题
The demand for money is inversely related to the real interest rate because:()
A. the cost of holding money falls as the real interest rate goes down.
B. increasing wealth makes cash balances unnecessary.
C. taxes make productive uses of funds less profitable.
答案
参考答案:A
解析:
At lower real interest rates the cost of holding money ( foregone interest earnings) is less and the quantity of money that individuals are willing to hold increases.