Multiple Choice
An increase in the interest rates will
A) cause people to hold less money, which, in turn, means that the velocity of money increases.
B) cause people to hold less money, which, in turn, means that the velocity of money decreases.
C) cause people to hold more money, which, in turn, means that the velocity of money increases.
D) cause people to hold more money, which, in turn, means that the velocity of money decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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