The Money Demand Function Is Negatively Sloped Because the

question 38

Multiple Choice

The money demand function is negatively sloped because the

• A) quantity of money demanded rises as the transactions demand falls.
• B) quantity of money demanded rises as nominal income falls.
• C) quantity of money demanded rises as the interest rate falls.
• D) the speculative demand for money rises as the interest rate rises.
• E) interest rate rises as the general price level falls.

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