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If Interest Rates Rise,what Will Happen to Demand for Money

Question 5

Multiple Choice

If interest rates rise,what will happen to demand for money?


A) It will decrease; people want to avoid inflationary losses.
B) Nothing; the money market can sustain long periods of disequilibrium.
C) It will increase.
D) Nothing; the economy will move to a new quantity demanded at a new interest rate.

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