Answer the question on the basis of the following table in which columns (1) and (2) indicate the transactions demand (Dt) for money and columns (1) and (3) show the asset demand (Da) for money:
The given data suggest that the amount of money demanded for transactions:
A) varies directly with the interest rate.
B) varies inversely with the interest rate.
C) varies inversely with nominal GDP.
D) is independent of the interest rate.
Correct Answer:
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