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The demand for money will fall if

The demand for money will fall if
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A People expect deflation soon
  • B Real GDP rises
  • C Real interest rates rise
  • D The GDP deflator rises
Correct Answer: Option C
Explanation:
If GDP falls, then people demand less money for transactions. As interest rate rise (fall), the demand for money will fall(rise).

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