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  3. Study Set
    Principles of Economics Study Set 12
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    Exam 27: Monetary Policy
  5. Question
    The Demand for Money Is
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The Demand for Money Is

Question 3

Question 3

Multiple Choice

The demand for money is


A) negatively related to real GDP.
B) positively related to the interest rate.
C) negatively related to the volume of transactions.
D) independent of the interest rate.
E) negatively related to the interest rate and positively related to the volume of transactions.

Correct Answer:

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