The Relationship Between the Interest Rate and the Quantity of Money

question 56

Multiple Choice

The relationship between the interest rate and the quantity of money demanded

• A)is a direct relationship
• B)is an inverse relationship
• C)is nonexistent
• D)is a direct relationship when the interest rate is low and an inverse relationship when the interest rate is high
• E)is an inverse relationship when the interest rate is low and a direct relationship when the interest rate is high

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