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As the Interest Rate Falls, People Become More Willing to Hold

Question 12

Multiple Choice

As the interest rate falls, people become more willing to hold money until, at the equilibrium interest rate, people are happy


A) to demand the central bank issues more money.
B) to hold exactly the amount of money the central bank has supplied.
C) to demand less than the amount of money the central bank has supplied.
D) to demand more than the amount of money the central bank has supplied.

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