Money demand became more sensitive to changes in interest rates starting in the
A) 1970s.
B) 1980s.
C) 1990s.
D) 2000s.

Name: Money demand became more sensitive to changes in interest rates starting in the A) 1970s. B) 1980s. C) 1990s. D) 2000s.
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Question

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The 1970s marked a significant shift in the sensitivity of money demand to interest rates, largely due to high inflation and the advent of financial innovations that offered more alternatives to holding money.

Money Demand Became More Sensitive to Changes in Interest Rates