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According to Keynes' Theory of Money Demand,a Low Interest Rate

Question 35

Multiple Choice

According to Keynes' theory of money demand,a low interest rate increases the likelihood of a capital ________ and ______ the interest elasticity of money demand.


A) gain on bonds; reduces.
B) gain on money; increases.
C) loss on bonds; reduces.
D) loss on money; increases.
E) none of the above.

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