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    Exam 5: Understanding Interest Rates, Savings, and the Wealth Effect
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    The Motive for Holding Money in Response to Expected Changes
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The Motive for Holding Money in Response to Expected Changes

Question 92

Question 92

Multiple Choice

The motive for holding money in response to expected changes in interest rates is known as the:


A) Transactions motive
B) Precautionary motive
C) Speculative motive
D) Liquidity motive
E) None of the above

Correct Answer:

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