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Consider the Following Table -These Data Suggest That the Amount of Money That Society

Question 39

Multiple Choice

Consider the following table

 Interest rate (%)  Transaction demand  for money  Asset demand  for money 12$100$010100208100406100604100802100100\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Interest rate } \\( \% ) \end{array} & \begin{array} { c } \text { Transaction demand } \\\text { for money }\end{array} & \begin{array} { c } \text { Asset demand } \\\text { for money }\end{array} \\\hline 12 & \$ 100 & \$ 0 \\\hline 10 & 100 & 20 \\\hline 8 & 100 & 40 \\\hline 6 & 100 & 60 \\\hline 4 & 100 & 80 \\\hline 2 & 100 & 100 \\\hline\end{array}
-These data suggest that the amount of money that society wishes to hold as an asset:


A) varies directly with the interest rate
B) varies inversely with the interest rate
C) varies inversely with real output
D) is independent of the interest rate
E) varies directly with the amount of money demanded for transactions purposes

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