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The Amount of Money Held for Speculative Reasons

Question 4

Multiple Choice

The amount of money held for speculative reasons


A) increases if bond prices are expected to decline soon.
B) decreases if GDP remains the same.
C) is affected by expected bond prices but not by expected bond interest rates.
D) varies directly with the transactions demand for money.
E) decreases as the number of different assets counted as fiat money rises.

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