Multiple Choice
The fact that in addition to being a medium of exchange, money serves as a store of value means that
A) movements in the interest rate should not affect the demand for money.
B) movements in the price level should not affect the demand for money.
C) money competes with other assets in the portfolios of businesses and households.
D) the demand for real balances should increase more than proportionately with increases in real income.
Correct Answer:
Verified
Correct Answer:
Verified
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