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A Major Criticism of Keynes' Original Theory of the Demand

Question 6

Multiple Choice

A major criticism of Keynes' original theory of the demand for money is that


A) he made the transaction demand a real demand for money.
B) he combined separate parts of the demand for money.
C) he made the demand for money depend on both the interest rate and the level of income.
D) he assumed the demand for money was directly related to income.

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