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The Relationship Between the Interest Rate and the Quantity of Money

Question 2

Multiple Choice

The relationship between the interest rate and the quantity of money demanded


A) is a direct relationship
B) is an inverse relationship
C) is nonexistent
D) is a direct relationship when the interest rate is low and an inverse relationship when the interest rate is high
E) is an inverse relationship when the interest rate is low and a direct relationship when the interest rate is high

Correct Answer:

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