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    Survey of Economics Study Set 1
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    Exam 20: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model
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    When People Hold Money to Transact Purchases They Expect to Make
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When People Hold Money to Transact Purchases They Expect to Make

Question 14

Question 14

Multiple Choice

When people hold money to transact purchases they expect to make, this is known as the:


A) precautionary demand for money.
B) liquidity demand for money.
C) spending demand for money.
D) speculative demand for money.
E) transactions demand for money.

Correct Answer:

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