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Assume That People Hold Money When the Interest Rate Is

Question 81

Multiple Choice

Assume that people hold money when the interest rate is low so they can purchase bonds at a lower price if the interest rate increases.According to Keynes,what is this called?


A) Asset demand for money.
B) Transactions demand for money.
C) Speculative demand for money.
D) Precautionary demand for money.
E) Risk sharing.

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