Empirical Studies Done on Money Demand Established That

Empirical studies done on money demand established that

A) the demand for real money balances increases with increases in the interest rate
B) the effects of income and interest rate changes on the demand for real money balances is more pronounced after a significant lag
C) real money demand increases proportionately with the level of income
D) people have money illusion since nominal money demand tends to increase less than proportionately with increases in the price level
E) people will change their money holdings drastically if they expect a transitory change in interest rates