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The "Transactions Demand" for Money Arises from the Fact That

Question 32

Multiple Choice

The "transactions demand" for money arises from the fact that


A) there is uncertainty in the receipts of income.
B) there is uncertainty about the movement of interest rates.
C) households wish to have all their wealth in the form of money.
D) households want to hold money in order to make purchases of goods and services.
E) households want to keep cash on had to buy bonds if bond prices drop.

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