The opportunity cost of holding money (what households are giving up by holding their wealth in the form of money instead of other assets) is: the real interest rate the inflation rate the nominal interest rate minus the inflation rate

The opportunity cost of holding money (what households are giving up by holding their wealth in the form of money instead of other assets) is: the real interest rate the inflation rate the nominal interest rate minus the inflation rate

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Money Growth And Inflation

Section: Chapter Questions

Problem 6PA

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The opportunity cost of holding money (what households are giving
up by holding their wealth in the form of money instead of other
assets) is:
the real interest rate
the inflation rate
the nominal interest rate
minus the inflation rate

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