The money demand curve is downward sloping because
A) lower interest rates cause households and firms to switch from money to financial assets.
B) lower interest rates cause households and firms to switch from financial assets to money.
C) lower interest rates cause households and firms to switch from money to shares.
D) lower interest rates cause households and firms to switch from money to bonds.
Correct Answer:
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A) increases the
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A)negative slope.
B)positive
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