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The "Precautionary Demand" for Money Arises from the

Question 34

Multiple Choice

The "precautionary demand" for money arises from the


A) fear that interest rates will fall.
B) fear that interest rates will rise.
C) need to make predictable purchases of goods and services.
D) uncertainty about when some expenditures will be necessary.
E) desire to avoid paying interest on credit purchases.

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