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If Nominal Interest Rates Rise, What Will Happen to Demand

Question 46

Multiple Choice

If nominal interest rates rise, what will happen to demand for money?​


A) ​It will increase.
B) ​It will decrease.
C) ​Nothing; the economy will move to a new quantity demanded at a new interest rate.
D) ​It depends on what happens to other determinants of demand for money like prices or income.

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