Economics · Macroeconomics
Which of the following statements is true regarding the demand for money?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1At higher rates of interest, liquidity preference of people will increase.
- 2At lower rates of interest, speculative demand for money will be higher.✓
- 3At higher rates of interest, transactions demand for money will be higher.
- 4At lower rates of interest, people will have a lower preference for liquidity.
Correct answer
At lower rates of interest, speculative demand for money will be higher.
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