Friedman's argument that competition among banks will tend to keep the difference between the return on bonds and money relatively constant implies that changes in ________ will have ________ on the demand for money.

Question

Quizplus · Accepted Answer

Friedman's argument suggests that competition among banks will keep the difference between bond returns and returns on money relatively constant, which implies that changes in interest rates will have little effect on the demand for money. Therefore, the correct choice is D.

Friedman's Argument That Competition Among Banks Will Tend to Keep