If Americans suddenly decide to hold more cash for carrying on transactions and for precautionary reasons, which of the following is most likely to result?
A.
Increase in interest rates
B.
Decrease in interest rates
C.
Dollar depreciates in value
D.
Exports will rise
Exam No：AP Macroeconomics Problem Set 5 Year：2024 Question No：APMacroeconomics2024AP0088
Answer:
A
Knowledge points:
4.2 Nominal v. Real Interest Rates
5.1 Fiscal and Monetary Policy Actions in the Short Run
5.3 Money Growth and Inflation
Solution:
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