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Basile [38]
3 years ago
9

An increase in the U.S. interest rate

Business
1 answer:
Olegator [25]3 years ago
8 0

Answer:

The correct answer is letter "A": raises the opportunity cost of holding dollars.

Explanation:

An interest rate is the cost of borrowing money or the compensation for assuming the risks for lending money. Interest is a cost for one party and income for another. As interest rates increase, people will tend to spend less money so, by keeping it saved, <em>the money earns more value</em> as a form of interest.

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