Multiple Choice
Which of the following best explains why the demand for money depends upon the interest rate?
A) Money is an interest-earning asset.
B) Money is not an interest-earning asset.
C) The alternatives to holding money are not interest-earning assets.
D) The alternatives to holding money earn more interest than money does.
E) People must pay interest on loans.
Correct Answer:
Verified
Correct Answer:
Verified
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