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

Question 2

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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 that society wishes to hold as an asset:


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.

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