An Important Difference Between Keynes's Approach to the Demand for Money

Multiple Choice

An important difference between Keynes's approach to the demand for money and Friedman's approach is that

A) there is no role for the opportunity cost of holding money in Friedman's theory.
B) in Keynes's theory, changes in output have no effect on the demand for money.
C) in Friedman's theory, money demand responds only slightly to short-run fluctuations in income.
D) in Keynes's theory, money demand is a function of the real interest rate, rather than the nominal interest rate.