The precautionary demand for money is determined by
ECONOMICS
JAMB 2014
The precautionary demand for money is determined by
- A. the rate of interest
- B. the level of savings
- C. the level of income
- D. general price level
Correct Answer: A. the rate of interest
Explanation
The precautionary demand is dependent on the size of income, the availability of credit, and the rate of interest.
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