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Which of the Following Is True

Question 47

Multiple Choice

Which of the following is true?


A) When bond prices rise, interest rates fall, and bondholders make capital losses.
B) The quantity of money demanded is high when interest rates are low because the opportunity cost of holding money is low and people fear a capital loss if they hold bonds.
C) The liquidity preference theory says that people always prefer more liquidity to less.
D) Keynes advocated the use of monetary policy over fiscal policy.

Correct Answer:

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