Empirical Studies Done on Money Demand Established That

Multiple Choice

Empirical studies done on money demand established that

A) the income elasticity of money demand (M1) is greater than 1
B) the income elasticity of money demand (M1) is equal to 1
C) the income elasticity of money demand (M1) is larger in the long run than in the short run
D) the interest elasticity of money demand (M1) is close to -1
E) none of the above