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Q. |
Speculative demand for money is zero when market rate of interest is |
A. | more than the ‘critical rate’. |
B. | more than the market rate of interest but less than the critical rate (i.e. capital gains occur). |
C. | less than the market rate of interest. |
D. | lowest (i.e. in liquidity trap). |
Answer» A. more than the ‘critical rate’. |
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