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    Macroeconomics Study Set 68
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    Exam 16: Interest Rates and Monetary Policy
  5. Question
    It Is Costly to Hold Money Because
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It Is Costly to Hold Money Because

Question 337

Question 337

Multiple Choice

It is costly to hold money because


A) deflation may reduce its purchasing power.
B) in doing so, one sacrifices interest income.
C) bond prices are highly variable.
D) the rate at which money is spent may decline.

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