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Answer to Question #93554 in Macroeconomics for Lexie
Question #93554
Which of the following statements regarding the demand for money is/are correct?
a. The speculative demand for money is independent of the changes in income.
b. The precautionary demand for money decreases as the interest rate decreases.
c. Changes in income will cause a shift of the total demand for money curve.
[1] Only a and c
[2] Only b and c
[3] Only a
[4] Only b
[5] Only c
a. The speculative demand for money is independent of the changes in income.
b. The precautionary demand for money decreases as the interest rate decreases.
c. Changes in income will cause a shift of the total demand for money curve.
[1] Only a and c
[2] Only b and c
[3] Only a
[4] Only b
[5] Only c
Expert's answer
[5] Only c
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