The Money Demand Curve Has a

question 259

Multiple Choice

The money demand curve has a

• A)negative slope because an increase in the interest rate decreases the quantity of money demanded.
• B)positive slope because an increase in the interest rate increases the quantity of money demanded.
• C)negative slope because an increase in the price level decreases the quantity of money demanded.
• D)positive slope because an increase in the price level increases the quantity of money demanded.
• E)positive slope because an increase in the interest rate increases the value of future savings.

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