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Which One of the Following Statements About the Demand for Money

Question 43

Multiple Choice

Which one of the following statements about the demand for money is not correct?


A) The amount of money that people hold is negatively related with the interest rate.
B) As the level of national income rises, the amount of money balances that individuals hold decreases.
C) Both the level of national income and the interest rate affect the demand for money balances.
D) Other things constant, an increase in the real interest rate reduces the demand for real money balances.

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