The "Precautionary Demand" for Money Arises from the

question 20

Multiple Choice

The "precautionary demand" for money arises from the

• A)desire to avoid paying interest on credit purchases.
• B)fear that interest rates will fall.
• C)fear that interest rates will rise.
• D)uncertainty about when some expenditures will be necessary.
• E)need to make predictable purchases of goods and services.