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QUESTION:
When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis, an increase in the interest rate _______.
a. increases the quantity demanded of money
b. increases the demand for money
c. decreases the quantity demanded of money
d. decreases the demand for money
e. none of the answer choices
ANSWER:
c. decreases the quantity demanded of money
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