The Demand for Money Is

question 3

Multiple Choice

The demand for money is

• A)negatively related to real GDP.
• B)positively related to the interest rate.
• C)negatively related to the volume of transactions.
• D)independent of the interest rate.
• E)negatively related to the interest rate and positively related to the volume of transactions.

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Definitions:

Internet Transactions

Commercial or financial transactions conducted electronically on the internet.

Acceptance

The act of agreeing to the terms of an offer, thereby forming a contract.

Offer

A tentative promise to do something if another party consents to do what the first party requests.

Telephone

A telecommunications device that allows two or more users to conduct a conversation when they are too far apart to be heard directly.