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The Baumol-Tobin Analysis Suggests That an Increase in the Brokerage

Question 21

Multiple Choice

The Baumol-Tobin analysis suggests that an increase in the brokerage fee for buying and selling bonds will cause the demand for money to ________ and the demand for bonds to ________.


A) increase;increase
B) increase;decrease
C) decrease;increase
D) decrease;decrease

Correct Answer:

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