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Assume There Are Just Two Assets,money and Bonds

Question 54

Multiple Choice

Assume there are just two assets,money and bonds.We can expect that an individual with a given level of wealth will


A) hold less money when bond prices rise.
B) hold more money when the current interest rate is very low.
C) not hold money as long as bonds pay a positive rate of interest.
D) hold lots of money even at very high interest rates.
E) hold less money when the current interest rate is very low.

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