Multiple Choice
On a money demand diagram with the interest rate on the vertical axis,the real money balance demand schedule would be a vertical line under the assumption that
A) a lower interest rate raises the demand for real money.
B) a lower interest rate lowers the demand for real money balances.
C) the interest rate has no effect on the demand for real money balances.
D) balances.
E) a higher real GDP raises the demand for real money balances.
Correct Answer:
Verified
Correct Answer:
Verified
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