If Interest Rates Rise,what Will Happen to Demand for Money

question 25

Multiple Choice

If interest rates rise,what will happen to demand for money?

• A)It will decrease; people want to avoid inflationary losses.
• B)Nothing; the money market can sustain long periods of disequilibrium.
• C)It will increase.
• D)Nothing; the economy will move to a new quantity demanded at a new interest rate.

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