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    Economics Today Study Set 1
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    Exam 16: Domestic and International Dimensions of Monetary Policy
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    The Relationship Between the Interest Rate and the Precautionary Demand
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The Relationship Between the Interest Rate and the Precautionary Demand

Question 148

Question 148

Multiple Choice

The relationship between the interest rate and the precautionary demand for money is


A) positive.
B) inverse.
C) positive sometimes and inverse other times.
D) nonexistent.

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