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Columns (1)and (2)indicate the Transactions Demand (Dt)for Money and Columns

Question 1

Multiple Choice

Columns (1) and (2) indicate the transactions demand (Dt) for money and columns (1) and (3) show the asset demand (Da) for money:
-Refer to the above information.These data suggest that the amount of money demanded for transactions purposes:


A) varies directly with the interest rate.
B) varies inversely with the interest rate.
C) varies inversely with the GDP.
D) is independent of the interest rate.

Correct Answer:

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