Economics · Monetary Policy
How does an increase in interest rates generally affect the demand for money in an economy?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The demand for money increases
- 2There is no demand for money at all
- 3The demand for money remains constant
- 4The demand for money decreases✓
Correct answer
The demand for money decreases
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