Greene Morgan
06/03/2023 · Middle School
Which one of the following statements is incorrect? The opportunity cost of holding money balances is the interest that could have been earned if the money had been used to purchase interest-bearing assets instead. Anyone who wishes to enter into transactions in a monetary economy has to holid money as a medium of exchange. The quantity of money demanded for transaction purposes depends on the level of income. The quantity of money demanded for speculative purposes is positively related to the interest rate.
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The incorrect statement is: "The quantity of money demanded for speculative purposes is positively related to the interest rate."
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