The real money demand curve is downward sloping because
A) real money demand is inversely related to total nominal income.
B) real money demand is inversely related to the short-term nominal interest rate.
C) real money demand is inversely related to a time trend.
D) real money demand is inversely related to the real money supply.
Correct Answer:
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Q11: The demand-for-money function (Md/P) is
A) MyY +
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Q14: If there is excess supply in the
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