Economics · Monetary Economics
According to liquidity preference theory, as nominal income increases, what happens to the transaction demand for money?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The demand for money increases✓
- 2The demand for money decreases
- 3There is no demand for money at all
- 4The demand for money remains constant
Correct answer
The demand for money increases
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