Which of the following is a reason that individuals hold money balances?
1. money does not st...
Which of the following is a reason that individuals hold money balances?
1. money does not store value for individuals.
2. there is no opportunity cost for individuals holding money.
3. individuals have precautionary motives for storing money.
4. a decrease in the interest rate will the quantity of money demanded.
Answers: 3
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