If the interest rate is higher than normal,people are more likely to hold
A) bonds instead of money because as the interest rate starts to rise,the value of the bonds will increase.
B) bonds instead of money because the opportunity cost of money is high.
C) money instead of bonds because the brokerage fees and other costs of buying bonds are high when the interest rate is low.
D) money instead of bonds because there is a speculative motive for holding a larger amount of money.
Correct Answer:
Verified
Q24: Which of the following will most likely
Q25: Refer to the information provided in Figure
Q26: The speculative demand for money
A)increases when income
Q27: Refer to the information provided in Figure
Q28: Refer to the information provided in Figure
Q30: Refer to the information provided in Figure
Q31: The speculative demand for money is
A)positively related
Q32: Refer to the information provided in Figure
Q33: Refer to the information provided in Figure
Q34: The transaction demand for money
A)decreases when interest
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