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Which Way Does the Money Demand Curve Slope

Question 3

Multiple Choice

Which way does the money demand curve slope?  


A)  downward, because the cost of holding money decreases as the interest rate decreases 
B)  downward, because the cost of holding money increases as the interest rate decreases 
C)  upward, because people demand more money as GDP increases 
D)  upward, because people demand more money as GDP decreases

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