For a given interest rate, a higher level of output means an increase in the number of transactions and an increase in the demand for money.

Name: For a given interest rate, a higher level of output means an increase in the number of transactions and an increase in the demand for money.
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Question

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When output increases, people engage in more transactions (such as buying more goods and services) which increases the demand for money to facilitate these transactions.

For a Given Interest Rate, a Higher Level of Output