Columns (1)and (2)indicate the Transactions Demand (D_t)for Money and Columns

question 14

Multiple Choice

Columns (1) and (2) indicate the transactions demand (D_t) for money and columns (1) and (3) show the asset demand (D_a) for money:
-Refer to the above information.These data suggest that the amount of money demanded for transactions purposes:

• A) varies directly with the interest rate.
• B) varies inversely with the interest rate.
• C) varies inversely with the GDP.
• D) is independent of the interest rate.

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