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Which of the Following Correctly Describes the Relationship Between the Demand

Question 38

Multiple Choice

Which of the following correctly describes the relationship between the demand for money and interest rates?


A) Interest rates and money demand are negatively related.
B) Interest rates and money demand are positively related.
C) Money demand is independent of interest rates.
D) Interest rates affect money demand through the marginal propensity to import.

Correct Answer:

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