8. As interest rates rise,
O
bonds and savings accounts become less attractive for investment
О
it becomes less expensive to hold money as cash
O
firms will generally spend their wealth
O
it becomes more expensive to hold money as cash

As interest rates rise, it becomes more expensive to hold money as cash. When interest rates increase, the opportunity cost of holding money or investing in low-yielding assets like bonds rises. Therefore, people tend to hold less money and shift their investments towards higher-yielding alternatives.

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8. As interest rates rise,Obonds and savings accounts become less attractive for investmentОit becomes less expensive to hold money as cashOfirms will generally spend their wealthOit becomes more expensive to hold money as cash

Answer :

Final answer:

Explanation:

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Other Questions

8. As interest rates rise,
O
bonds and savings accounts become less attractive for investment
О
it becomes less expensive to hold money as cash
O
firms will generally spend their wealth
O
it becomes more expensive to hold money as cash