f the interest rate on cds increases from 5% to 10%, the opportunity cost of holding money will and the quantity demanded of money will . * 10 points a. remain unchanged; remain unchanged b. increase; increase c. decrease; increase d. decrease; decrease e. increase; decrease

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25-10-2022
Business

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f the interest rate on cds increases from 5% to 10%, the opportunity cost of holding money will and the quantity demanded of money will . * 10 points a. remain unchanged; remain unchanged b. increase; increase c. decrease; increase d. decrease; decrease e. increase; decrease

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kumarravichandra kumarravichandra · Answer 1 · 2022-10-28T08:13:24-04:00

The equilibrium price may rise, fall, or stay the same as supply and demand both rise.

A rise in demand will cause a rise in the equilibrium price and an increase in supply, all other things being equal. Reduced demand will cause the equilibrium price to fall and the supply to increase.

An increase in supply will, if all else stays the same, lead to a drop in the equilibrium price and a rise in the quantity needed. As the supply decreases and the demand decreases, the equilibrium price will rise.

Find out more about balance increase or decrease here:

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