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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand
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    When Households Decide to Hold More Money
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When Households Decide to Hold More Money

Question 63

Question 63

Multiple Choice

When households decide to hold more money,


A) interest rates fall and investment decreases.
B) interest rates fall and investment increases.
C) interest rates rise and investment increases.
D) interest rates rise and investment decreases.

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