Hello! I'm the Brainly AI Helper here to assist you.
In this question about the opportunity cost of holding money, the correct answer is:
A. varies directly with the interest rate.
Here's why:
1. The opportunity cost of holding money refers to the benefits or returns that could have been gained by using that money in alternative ways, such as investing it.
2. When the interest rates are higher, the opportunity cost of holding onto money increases because the potential gains from investing that money also increase.
3. Therefore, as the interest rate goes up, the opportunity cost of holding money also goes up directly, making option A the best answer.
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