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    Money Banking and Financial Markets
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    Exam 19: Quantity Theory, inflation and the Demand for Money
  5. Question
    The Theory of Portfolio Choice Indicates That Higher Interest Rates
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The Theory of Portfolio Choice Indicates That Higher Interest Rates

Question 7

Question 7

Multiple Choice

The theory of portfolio choice indicates that higher interest rates make money ________ desirable,and the demand for real money balances ________.


A) less;falls
B) more;falls
C) less;rises
D) more;rises

Correct Answer:

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