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As the interest rate falls, the opportunity cost of holding moneyrises , and peopleincrease their speculative balances. Identify the motive for holding money in the
As the interest rate falls, the opportunity cost of holding moneyrises , and peopleincrease their speculative balances. Identify the motive for holding money in the following scenario. Dmitri moves to a smaller apartment. Because of the lower monthly rent, he places a larger share of funds from his paycheck in a retirement fund and a smaller share in his savings account. This is an example of a decrease in Dmitri's demand for money
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