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Columns (1) and (2) Indicate the Transactions Demand (Dt) for Money

Question 160

Multiple Choice

Columns (1) and (2) indicate the transactions demand (Dt) for money and columns (1) and (3) show the asset demand (Da) for money: Refer to the above information.These data suggest that the amount of money demanded for transactions purposes:


A) varies directly with the interest rate.
B) varies inversely with the interest rate.
C) varies inversely with the GDP.
D) is independent of the interest rate.

Correct Answer:

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