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Which of these statements is true?
Question

Which of these statements is true?

A.

At lower rates of interest, people will have a lower preference for liquidity.

B.

At higher rates of interest transactions demand for money will be higher.

C.

At lower rates of interest, speculative demand for money will be higher.

D.

At higher rates of interest liquidity preference of people will increase

Correct option is C

Among the given options, the true statement regarding the relationship between interest rates and the demand for money is: (c) At lower rates of interest, speculative demand for money will be higher.

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