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Question 1: The Demand for Money 1. Which of the following factors would increase the transactions demand for money? Explain your choices. a. Lower nominal

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Question 1: The Demand for Money 1. Which of the following factors would increase the transactions demand for money? Explain your choices. a. Lower nominal interest rates b. A fall in nominal income Which of the following factors would increase the portfolio demand for money? Explain your choices. a. A new website allows you to liquidate your stock holdings quickly and cheaply. b. You expect future interest rates to rise C. A financial crisis is looming 2

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