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The Market Demand Curve for Money Is

Question 12

Multiple Choice

The market demand curve for money is


A) Vertical because it is a fixed amount regardless of changes in the interest rate.
B) Horizontal because it is determined by the individual.
C) Upward-sloping to the right because people wish to hold more money at higher interest rates and less money at lower interest rates.
D) Downward-sloping to the right because people wish to hold less money at higher interest rates and more money at lower interest rates.

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