As the level of interest rates in the economy falls, the demand for money, other things being equal,a.Will fall more or less in line with the change in interest ratesb.Will remain unchangedc.Increased.Could move in either direction depending on other factorsClear my choice
Question
As the level of interest rates in the economy falls, the demand for money, other things being equal,a.Will fall more or less in line with the change in interest ratesb.Will remain unchangedc.Increased.Could move in either direction depending on other factorsClear my choice
Solution
As the level of interest rates in the economy falls, the demand for money, other things being equal, could move in either direction depending on other factors.
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