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In His Liquidity Preference Framework,Keynes Assumed That Money Has a Zero

Question 18

Multiple Choice

In his liquidity preference framework,Keynes assumed that money has a zero rate of return; thus,when interest rates ________ the expected return on money falls relative to the expected return on bonds,causing the demand for money to ________.


A) rise; fall
B) rise; rise
C) fall; fall
D) fall; rise

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