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On a Diagram with the Interest Rate on the Vertical

Question 136

Multiple Choice

On a diagram with the interest rate on the vertical axis and the quantity of money on the horizontal axis,how can the transactions demand for money be shown?


A) As a line parallel to the horizontal axis.
B) As a vertical line.
C) As a curve sloping downwards from left to right.
D) As a curve sloping upwards from left to right.
E) It cannot be shown on such a diagram.

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