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-Refer to the Graph Above to Answer This Question

Question 30

Multiple Choice

  -Refer to the graph above to answer this question.Why is the money demand curve MD downward-sloping? A) The transactions demand for money is downward-sloping. B) There is a direct relationship between bond prices and interest rates. C) The asset demand for money is downward-sloping. D) Because of the wealth or real-balances effect. E) The opportunity cost of holding money increases as the interest rates decreases.
-Refer to the graph above to answer this question.Why is the money demand curve MD downward-sloping?


A) The transactions demand for money is downward-sloping.
B) There is a direct relationship between bond prices and interest rates.
C) The asset demand for money is downward-sloping.
D) Because of the wealth or real-balances effect.
E) The opportunity cost of holding money increases as the interest rates decreases.

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