Perkins Owen
04/10/2023 · Middle School

Which one of the following statements is incorrect? A The opportunity cost of holding money balances is the interest that could have been earned if the money used to purchase interest-bearing assets instead. B Anyone who wishes to enter into transactions in a monetary economy has to hold money as a medium o C The quantity of money demanded for transaction purposes depends on the level of income. D The quantity of money demanded for speculative purposes is positively related to the interest rate.

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The incorrect statement is D. The quantity of money demanded for speculative purposes is actually negatively related to the interest rate.

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