Empirical studies done on money demand established that
A) the income elasticity of money demand (M1) is greater than 1
B) the income elasticity of money demand (M1) is equal to 1
C) the income elasticity of money demand (M1) is larger in the long run than in the short run
D) the interest elasticity of money demand (M1) is close to -1
E) none of the above
Correct Answer:
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