Multiple Choice
Since the elimination of interest rate ceilings on deposits,the implicit interest rate on money more closely approaches bond interest rates.This suggests that changes in interest rates will
A) have a larger impact on money demand.
B) have a smaller impact on money demand.
C) no longer affect the speculative demand for money.
D) no longer affect the transactions demand for money.
Correct Answer:
Verified
Correct Answer:
Verified
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